T-bills worth MVR 1 bln up for sale

Treasury bills (T-bills) worth almost MVR one billion have been opened for sale to cover government expenditure.

The T-bills, which are announced weekly by the Ministry of Finance, are offered for sale in T-bills worth MVR 419 million with a repayment period of 28-days and MVR 270 million with a 98-day repayment period. In addition, a T-bill of MVR 130.5 million is up for sale with a repayment period of 182 days, as well as a T-bill of MVR 422 million with a repayment period of 364 days. The total value of the T-bills announced for sale this week is more than MVR 1.2 billion.

According to the Finance Ministry, MVR 3 billion has to be paid for T-bills this year.

The interest rate on the T-bills ranges from 3.50 percent to 4.60 percent. The current interest rate on T-bills that are to be repaid within a month is 3.50 percent. A three-month T-bill has a 3.87 percent interest rate, while 4.23 percent is charged as interest on a six-month T-bill. The interest rate on a one-year T-bill is 4.6 percent. The T-bills are purchased by the pension fund, some banks, and some government-owned companies. Some private companies also buy T-bills also purchase T-bills.