Outstanding securities top MVR 100bn; govt seeks MVR 3.2bn more to manage cashflow

The Maldivian government has announced the sale of over MVR 3.2 billion in T-bills to manage its cashflow, as the country’s domestic debt alone surpasses MVR 100 billion.

According to an announcement by the Finance Ministry on Sunday, the government is selling four T-bills worth total MVR 3.2 billion.

The T-bills up for subscription are:

• MVR 1.32 billion T-bill at an interest rate of 3.50 percent and maturity period of 28 days
• MVR 70.2 million T-bill at an interest rate of 3.87 percent and maturity period of 98 days
• MVR 50 million T-bill at an interest rate of 4.23 percent and maturity period of 182 days
• MVR 1.76 million T-bill at an interest rate of 4.60 percent and maturity period of 364 days 

The bills are being sold on Sunday and must be settled the next day.

T-bills are a financial instrument sold by central banks to meet government budget financing requirements with a fixed interest rate and a maturity period of one year or less. T-bills are usually bought by banks that operate in Maldives, the pension office, state-owned enterprises, and some private companies.

Maldivian government currently has MVR 101 billion in outstanding securities, including MVR 100 billion in domestic debt.

This includes MVR 40.2 billion due in a year.