T-bills worth MVR 2.4 bln sold to cover gov't expenditure

The government has sold MVR 2.4 billion in T-bills to meet its financial obligations.

According to the Finance Ministry, T-bills include MVR 1.1 billion with a 28-day repayment period, MVR 263.4 million with a 98-day repayment period, MVR 79 million with a 182-day repayment period, and MVR 999.5 million with a 364-day repayment period were sold by the government. The interest rate on the T-bills ranges from 3.50 percent to 4.60 percent.

T-bills, among various government securities, are short-term financial instruments. The Maldives government issues T-bills at discounted prices in the local currency, with the face value repayable at the end of the specified repayment period. The T-bills the government sells are bought by the Pension Fund, some banks, and some government-owned companies. In addition, some private companies also buy T-bills.

The latest data from the Finance Ministry indicates that the government has an outstanding debt of MVR 76 billion from T-bills and bonds.