Ministry of Finance has disclosed that it has sold Treasury bills (T-bills) worth USD 117 million to cover government expenditure. As such, it has sold four T-Bills worth USD 117 million.
The finance ministry sold a T-bill worth USD 84.7 million to be paid in 28 days, a T-bill worth USD 1.3 million to be paid in 98 days and a T-bill worth USD 15 million to paid in 182 days as well as a T-bill worth USD 19 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.