The Minister of Finance Ibrahim Ameer, on Wednesday, announced that the government has sold Treasury bonds (T-bonds) worth MVR 1.5 billion to India.
In an exclusive interview with local media Mihaaru, Minister Ameer stated that T-bonds were sold for the purpose of providing fund assistance for government projects.
While India decided to extend aid through USD 150 million in T-bond sales, the country has provided USD 100 million through sovereign bond purchases to date. India is yet to finance the remaining USD 50 million.
Minister Ameer revealed that funds received through the T-bond sales will be utilized to finance the MVR 4 million budget deficit. As such, the funds will be used for recurrent and capital expenditures.
Moreover, he said that MVR 1.7 billion worth T-bills have been sold till date, with MVR 1.5 billion brought by India and MVR 220 million acquired by the domestic market.
In 2018, Indian Prime Minister Narendra Modi announced financial assistance of USD 1.4 billion in the form of budgetary support, currency swap and concessional lines of credit to fulfil socio-economic development programmes in Maldives.
The Reserve Bank of India and Maldives Monetary Authority signed a currency swap agreement worth USD 400 million on Monday.
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