T-bills worth MVR 2.5 billion have been opened for sale to cover government expenditure. This is the third time T-bills have been offered for sale this year.
The Finance Ministry has offered an MVR 1.4 billion T-bill with a 27-day repayment period and an MVR 90 million T-bill with a 98-day repayment period. In addition, a T-bill worth MVR 114 million with an 182-day repayment period and a T-bill with a value of MVR 952 million with a 364-day repayment period have also 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. Some private companies also buy T-bills.
