The Ministry of Finance has announced to issue Treasury bills (T-bills) worth USD 77.7 million. As such, the ministry will be selling a total of four T-bills.
The finance ministry will be selling a T-bill worth USD 12.9 million to be paid in 28 days and a T-bill worth USD 7.8 million to be paid in 98 days. Additionally, the ministry will also be selling a T-bill worth USD 44.5 million to paid in 182 days and a T-bill worth USD 13 million to be paid in 364 days. The ministry noted that the interest rate on the T-bills ranges from 3.50% to 4.60%.
T-bills are a short-term financial instrument. The finance ministry issues T-bills at discounted prices in the local currency, with the face value repayable at the end of the specified repayment period. Hence, this benefits the T-bill investors and not the state. The T-bills issued by the government is usually bought by the banks, Maldives Pension Administration Office, as well as public and private companies.