Interest rate on the Treasury bill reduced to 4.5 percent

The interest rate of the Treasury bill sold by the Government has been reduced to 4.5 percent effective from today.

Speaking at the launching ceremony of the Golden Ten-Five (Golden 50) currency notes, the Minister of Finance and Treasury, Abdulla Jihad said that the interest rate of the Treasury bill have been dropped from the previous nine percent to 4.5 percent.

“Starting today, the interest rate of the treasury bill has been dropped significantly. I would say about 50 percent has now been reduced.” The Minister said.

Minister Jihad said that with the drop of the interest rate of the Treasury bill, the banks would be forced to bring down the interest rates of their loans. The Minister said that the banks have been discussed with on the matter.

“With God’s will, in the near future the loan interest from the banks would become very low. I note that this is a very big achievement to the Maldivian people.” Minister Jihad said.

MMA reduced the interest rate of the Treasury bonds three weeks ago.

Much like a loan, a Treasury bill is something that has to be paid back within a specific timeframe. Usually, treasury bills are sold for a shorter timespan than a loan.