The government has generated MVR 8.2 billion in revenue through the sale of treasury-bills (T-Bills) and bonds during the first 10 months of 2023.
According to the ministry of finance, the T-Bill, bond and sukuk transactions in 2023 so far amount to MVR 75 billion while in January, the total stood at MVR 66 billion.
The state sold the highest number of the financial instruments to commercial banks, including MVR 16 billion worth of T-Bills, along with an additional 3.6 billion worth of T-Bills sold in US dollars, MVR 1.3 billion worth of Islamic financial instruments, and MVR 950 million worth of treasury bonds.
The government typically sells T-Bills to the Maldives Pension Fund, commercial banks, and state-owned enterprises (SOEs) to manage the state's cash flow.
Prominent local business enterprises like Champa Brothers and Universal Group of Companies are among the top investors in state-issued financial instruments, with significant contributions coming from the Commercial Bank of Maldives (CBM).
The government projects an annual revenue of MVR 12 billion from the sale of T-Bills and similar financial instruments by the end of 2023.
The state has secured an MVR 300 million subsidiary loan and an overdraft from the Maldives Monetary Authority (MMA) to manage budget expenditure.
The government has already overdraft MVR 4.2 billion, which has been converted into bonds. Furthermore, MMA regulations were revised to permit an additional supplementary overdraft of MVR 2 billion.
With this revision, the government has the capacity of an MVR 6.2 billion annual overdraw limit.
The government has arranged to acquire MVR 14 billion to address the budget deficit in 2023, with the majority of this sum obtained through T-Bills and MVR 4 billion through external loans.
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