The new government has introduced Treasury bills (T-bills) valued at MVR 2.8 billion for sale to meet its financial obligations.
The Finance Ministry has offered an MVR 1.8 billion T-bill with a 29-day repayment period and an MVR 230 million T-bill with a 97-day repayment. In addition, an MVR 80 million T-bills with 182 days repayment and MVR 686 million T-bills with 364 days repayment have been announced.
The interest rate on the T-bills ranges from 3.50 percent to 4.60 percent.
T-bills 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.
