Treasury bills (T-bills) have been issued for the third time this year, this time worth MVR 2.5 billion, to cover government expenditure.

The T-bills offered by the Finance Ministry include a MVR 1.4 billion issue with a maturity of 27 days, MVR 90 million with a maturity of 98 days, MVR 114 million with a maturity of 182 days, and MVR 952 million with a maturity of 364 days.

Interest rates on the T-bills, as always, ranged between 3.50 and 4.60 percent.

T-bills are usually issued by the Ministry of Finance in order to raise money to meet the state’s cash flow requirements and are usually sold to the pension fund, banks, some state-owned enterprises (SOEs), and private companies.

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.