The Maldives government has announced its plans of selling MVR 5.2 billion worth treasury bills (T-Bills) to adjust the state’s expenditure.
Ministry of Finance announced the sale of T-Bills has been set for the first working day of the new government, Sunday, November 19.
Generally the Maldives government sells between MVR 1 to 2.5 billion per week in financial instruments including T-Bills. However, the latest announcement is a significant increment from this.
The ministry has sold MVR 33 billion worth of T-Bills so far in 2023, which includes MVR 16.5 billion sold to commercial banks and another MVR 15 billion sold to other financial institutions. The ministry had also sold another MVR 103 million to private sectors as well.
The total sale of government’s financial instruments comprising of T-Bills, bonds and Sukuk has reached MVR 77 billion as of Thursday, last week. The domestic transactions from this total is at MVR 68 billion.
The country’s central bank, the Maldives Monetary Authority (MMA) sells four types of T-Bills which include repayments for them in 28 days, 98 days, 182 days, and 364 days. Interest is accrued to these T-Bills for the period exceeding the designated repayment duration.