The Ministry of Finance has offered Treasury Bills (T-Bills) worth MVR 1.6 billion for sale to cover state expenditure.
T-bill denominations include MVR 276.6 million with a 28-day maturity period, MVR 200 million with a 98-day maturity, MVR 289 million with a 182-day maturity, and MVR 843 million 364-day with a maturity.
The number of T-bills the government can sell annually to raise the financing needed to maintain the state’s cash flow is approved within the annual budget, and the sale of new T-bills often covers the settlements for those previously sold.
T-bills are issued by the Ministry of Finance to raise funds 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, with interest rates on the bills ranging from 3.50 percent to 4.60 percent.
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.