Govt announce T-Bill sale to meet expense needs

The Ministry of Finance has announced the sale of a total of MVR 4.5 billion worth in treasury bills.

The government has announced four treasury bills (T-Bills) with four maturity periods, that include; 28 days, 98 days, 182 days, and 364 days. The T-Bills include an MVR 700 million one, MVR 900 million T-Bill, and an MVR 1.8 billion T-Bill.

The bills would be sold between interest rates of 3.5 to 4.6 percent.

Some key investors of T-bills in the Maldives include commercial banks, Maldives Pension Administration Office (MPAO), state-owned enterprises (SOEs), and some private companies.

While the Maldives government has announced the sale of T-Bills to raise its capital, the island nation’s credit rating was lowered by two of the global credit rating agencies; Fitch Ratings and Moody’s.

Both rating agencies cited exponential rise in state debt as chief reason for their ratings downgrade.