The government announced plans to open for the sale of MVR 5.2 billion worth treasury bills (T-Bills) to adjust the state's expenditure.
Ministry of Finance announced that the sale of T-Bills has been set for the first working day of the new government, taking charge on November 17, Friday.
Generally the ministry sells between MVR 1 to 2.5 billion per week. Thus this sale is an increment from the average sale of T-Bills.
The ministry has sold MVR 33 billion worth of T-Bills so far in 2023, which include MVR 16.5 billion to commercial banks and MVR 15 billion to other financial institutions in the country. The ministry also sold another MVR 103 million to the private sector as well.
Total sale of government's financial instruments, inclusive of T-Bills, bonds and Sukuk, stood at MVR 77 billion as of last Thursday, with domestic transactions at MVR 68 billion out of the total.
Maldives Monetary Authority (MMA), the central bank of the country, sells four types of T-Bills which include repayments in 28 days, 98 days, 182 days, and 364 days. Interest will accrued to the excess repayment period.
While the government opens sale of T-Bills on a weekly basis to manage the state's cashflow for operations, it sells this financial instrument mainly to the pension fund, state-owned enterprises (SOEs), and private sector companies.
Prominent investors include Commercial Bank of Maldives (CBM), which includes stake of Champa Brothers, and Universal Group of Companies.
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