Minister of Finance Ibrahim Ameer has stated the government is preparing to open treasury bills (T-bills) for public investment.
T-bills are used to finance the government deficit and are sold at a discount. The government pays the buyer its face value when the bill matures.
Speaking at the Parliament of the Maldives, Minister Ameer said the finance ministry and the Maldives Monetary Authority (MMA) are working to develop a securities market and that T-bills will be open to public investment by the end of the year.
T-bills were first introduced by MMA in 2006, replacing the MMA Certificate of Deposits to finance the government deficit. Currently, all securities are issued in the primary market. As such, T-bills are issued via private placements to commercial banks, state-owned enterprises (SOEs), institutional investors, and private companies with the main aim of raising funds for government budget financing requirements.