The state’s domestic debt and government securities sold within the first six months of this year to settle the government’s cash flow amounted to MVR 24.5 billion and MVR 1.4 billion respectively, according to the statistics published by the Maldives’ central bank.
Maldives Monetary Authority (MMA)’s latest Quarterly Economic Bulletin shows that the state recorded a domestic debt of MVR 24.5 billion in the first half of this year compared to MVR 21.6 billion in 2015.
The government currently owes a debt of MVR 6.3 billion to MMA as T-Bonds in addition to MVR 115 million to commercial banks and MVR 1.4 billion to various other financial institutions.
MMA’s statistics show that the government’s highest debt in T-Bills is owed to commercial banks at MVR 9 billion. Other T-Bill debts include MVR 4.4 billion to non-banks, MVR 547 million to state companies and MVR 3.5 billion to several other financial institutions.
The authority’s statistics indicate a 31 percent increase in T-Bills sold to banks in the first half of this year compared to 2015. The government’s bank loans by the end of June amount to total MVR 12.5 million, which is a yearly increase of six percent.
MMA attributed the high domestic debt to the increased investment in T-Bills.