The Ministry of Finance has announced the sale of Treasury bills (T-bills) amounting to USD 117 million as part of efforts to cover government expenditure. The issuance included four T-bills with varying repayment periods and interest rates.
Among the T-bills issued, the largest was worth USD 84.7 million, which is set to be repaid within 28 days. Additionally, a T-bill valued at USD 1.3 million is scheduled for repayment in 98 days, another worth USD 15 million is due in 182 days, and the final T-bill of USD 19 million is to be repaid in 364 days. The interest rates on these T-bills range from 3.50% to 4.60%.
Treasury bills are short-term financial instruments that the government issues to raise funds. They are sold at discounted prices in the local currency, with the full face value repayable at the end of the specified period. While this arrangement benefits the investors who purchase the T-bills, it does not provide a financial gain for the state.
T-bills issued by the government are typically purchased by banks, the Maldives Pension Administration Office, as well as public and private companies. These institutions view T-bills as a secure investment option, given their government-backed nature and the fixed returns they offer over a short period.
