Treasury Bills (T-Bills) worth MVR 2 billion will be issued to cover government expenditure, with the Ministry of Finance issuing bills worth MVR 852 million at a 28-day maturity, MVR 224 million at a 98-day maturity, MVR 66 million at a 182-day maturity and MVR 869.3 million at a 365-day maturity.

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

According to the Ministry of Finance’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.

The ministry is looking to fund the gap, as per the ABP, by issuing treasury bills and treasury bonds priced at MVR 3.95 billion within the domestic market and to raise the remaining MVR 12.36 billion through project loans, sustainable financing, loans and bonds via external sources.

Additionally, the ministry, in January, had issued a Request for Proposals (RFP) seeking institutional investors to secure up to US$550 million through loans and treasury securities in line with the 2024 ABP.