The government has successfully raised MVR 1.7 billion in funding through the sale of Treasury Bills (T-bills), according to recent data released by the Ministry of Finance.

The government has strategically issued four tranches of T-bills, each with distinct maturity periods. The tranches encompass MVR 786 million with a 28-day maturity, MVR 46 million maturing in 98 days, MVR 231 million with a 183-day maturity period, and MVR 660 million maturing in one year.

The annual budget delineates the quantity of T-bills that the government can sell each year, a mechanism designed to raise the requisite financing to maintain the state’s cash flow. The revenue from the sale of new T-bills is typically allocated towards the settlement of previously sold bills.

T-bills, which are short-term debt instruments issued by the government to accrue funds, are customarily issued by the finance ministry on a weekly basis. These instruments are primarily purchased by a diverse range of entities including the pension fund, banks, select government-owned companies, and private corporations. The interest rates on these bills range between 3.50 percent and 4.60 percent.

T-bills are issued at a discount, and the buyer receives the face value of the T-bill upon its maturity. This structure makes them an appealing investment for entities seeking to manage short-term cash requirements.