The Ministry of Finance has issued Treasury Bills (T-bills) amounting to MVR 2 billion to cover government expenditure.

The T-bills offered by the Finance Ministry include an MVR 1.2 billion maturing in 36 days, MVR 160 million T-bill with a 92-day term, MVR 195.2 million with a maturity of 182 days, and an MVR 566 million with a 372-day maturity.

T-bills are usually issued by the Finance Ministry to raise money to meet the state’s cash flow requirements and are usually sold to the pension fund, banks, some government-owned companies, and private companies, with interest rates on the bills ranging from 3.50 percent to 4.60 percent.

According to the Finance Ministry’s Annual Borrowing Plan (ABP), the state will need to cover a MVR 16.31 billion deficit in 2024. The 2024 budget projects a MVR 14.08 billion deficit, while the principal repayments of external and domestic debt is set to cost the state an additional MVR 2.23 billion. 

T-bills are short-term debt instruments issued by the government to raise funds and are issued at a discount, where the buyer receives the face value of the issue upon maturity.