The government of Maldives has sold Treasury bills (T-bills) worth MVR 2.2 billion so far this year.
According to statistics publicised by Ministry of Finance, T-bills in Maldivian currency amounting to MVR 1.9 billion, and in US Dollars amounting to MVR 334 million were sold by last week.
In comparison, T-bills worth MVR 1.3 billion were sold by April in 2019, with a record total of MVR 4 billion by the end of the year.
As government securities to manage the country's cashflow and deficit, Maldives Monetary Authority (MMA) sells T-bills in four categories with differing repayment periods: 28 days, 98 days, 182 days and 364 days. The central bank opens T-bill sales on a weekly basis, with the main investors being Maldives Pension Administrative Office (MPAO) along with banks, and some companies with state shares and private firms.
However, due to challenges posed by the economic repercussions of the ongoing COVID-19 pandemic, the finance ministry noted that banks and some other investors were redeeming the T-bills already issued. The ministry further said that it was difficult to find new investors due to the crisis.
On April 12, the World Bank estimated that Maldives will see the worst economic recession in South Asia over the coronavirus pandemic. The finance ministry later publicised a paper on the current economic and fiscal situation of Maldives, which warned that government revenue for 2020 might be half of what was projected in the State Budget, while the state deficit is expected to reach MVR 13 billion.
Hence, the Maldivian government has moved to secure financial assistance from a number of foreign bodies and countries, to help address the challenges arising from COVID-19 as well as manage the country's economy and finances.
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