T-bills worth MVR 3.5 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 a MVR 925 million T-bills with 28 days repayment and a MVR 630 million T-bills with 98 days repayment. In addition, a MVR 915 million T-bills with 182 days repayment and a MVR 1 billion T-bill with 364 days repayment have 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.