The government has been offering T-bills weekly, with maturity periods ranging from one month to one year, at interest rates between 3.5 percent and 4.6 percent.
According to World Bank report titled Seeking Stability in Turbulent Times, Maldives has sold MVR 64 billion worth of Treasury Bills (T-bills) through the financial sector, contributing to a significant rise in domestic debt, which has now reached 68 percent of GDP.
The report highlights that T-bills sold to banks and pension funds have increased, alongside MVR 5.9 billion in loans issued to state-owned companies.
Domestic debt, comprising T-bills and loans from banks, has climbed to MVR 74 billion. The government has been offering T-bills weekly, with maturity periods ranging from one month to one year, at interest rates between 3.5 percent and 4.6 percent.
The report also states that the Maldives' total debt continues to rise, with government debt accounting for 36 percent of banks' total assets and 68 percent of the assets of other financial institutions, such as pension funds.
The country’s total debt stands at MVR 126 billion, with MVR 6.3 billion up for repayment this year, marking a 13 percent increase in debt repayment spending year by year. Last year, MVR 5.5 billion was spent on debt repayments.
In an effort to manage this debt, the government is reportedly in discussions with China and the UAE to defer debt repayments, while USD 50 million (MVR 770 million) has already been deferred for another year.
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