The Ministry of Finance has opened the sale of MVR 1.6 billion in Treasury Bills (T-bills) to cover the government's expenditure. This move is aimed at addressing the government's budget deficit without resorting to printing money.
The government will sell a series of T-bills with varying repayment periods. These include a T-bill worth MVR 276.6 million with a 28-day repayment term, an MVR 200 million T-bill with 98 days repayment, an MVR 289 million T-bill with a 182-day repayment term, and an MVR 843 million worth of T-bills with a 364-day repayment period.
T-bills are typically purchased by pension funds, government-owned companies, and some banks, with certain private companies also involved in the buying process. The interest rates on these T-bills range between 3.50% and 4.60%.
T-bills are short-term financial instruments issued by the central bank at a fixed interest rate, primarily to address the government’s budget deficit. The Ministry of Finance has taken over the responsibility for the sale and management of T-bills and T-bonds since 2021, shifting this role from the Central Bank (MMA), which previously published data related to these financial instruments.
This step is part of the government's broader fiscal strategy to manage national finances effectively without increasing the money supply.
The government will sell a series of T-bills with varying repayment periods. These include a T-bill worth MVR 276.6 million with a 28-day repayment term, an MVR 200 million T-bill with 98 days repayment, an MVR 289 million T-bill with a 182-day repayment term, and an MVR 843 million worth of T-bills with a 364-day repayment period.
T-bills are typically purchased by pension funds, government-owned companies, and some banks, with certain private companies also involved in the buying process. The interest rates on these T-bills range between 3.50% and 4.60%.
T-bills are short-term financial instruments issued by the central bank at a fixed interest rate, primarily to address the government’s budget deficit. The Ministry of Finance has taken over the responsibility for the sale and management of T-bills and T-bonds since 2021, shifting this role from the Central Bank (MMA), which previously published data related to these financial instruments.
This step is part of the government's broader fiscal strategy to manage national finances effectively without increasing the money supply.
