Govt announces sale of MVR 1.1 billion in T-bills to manage cashflow

The Maldivian government has announced the sale of over MVR 1.1 billion in T-bills as it seeks to manage its cashflow.

According to an announcement by the Finance Ministry on Sunday, the government is selling four T-bills worth total MVR 1.1 billion.

The T-bills up for subscription are:

• MVR 265 million T-bill at an interest rate of 3.50 percent and maturity period of 28 days
• MVR 55.03 million T-bill at an interest rate of 3.87 percent and maturity period of 98 days
• MVR 255 million T-bill at an interest rate of 4.23 percent and maturity period of 182 days
• MVR 535 million T-bill at an interest rate of 4.60 percent and maturity period of 364 days  

The bills are being sold on Sunday and must be settled the next day.

T-bills are a financial instrument sold by central banks to meet government budget financing requirements with a fixed interest rate and a maturity period of one year or less. T-bills are usually bought by banks that operate in Maldives, the pension office, state-owned enterprises, and some private companies.

Maldivian government currently has MVR 100 billion in outstanding securities.