The Ministry of Finance announced on Monday that it has secured MVR 2.1 billion through Treasury Bill (T-bill) sales as part of its efforts to raise funds for the state budget.

The ministry announced the issuing of MVR 2.2 billion worth T-bills last Monday, leaving MVR 146 million worth of funding unsecured.

T-bills maturing within three months and six months received less interest than the ministry anticipated. For T-bills with three-month maturity only MVR 224 million was secured while MVR 316 million was on offer. For T-bills with six-month maturity only MVR 62 million was secured with MVR 149 million on offer.

However, demand remained higher than expected for T-bills with one-month maturity, and 12-month maturity. T-bills with one-month maturity opened at MVR 974 million but went on to secure MVR 997 million worth, while T-bills with 12-month maturity opened at MVR 842 million but went on to secure MVR 852 million worth.

According to the ministry’s annual borrowing plan (ABP), MVR 3.95 billion will be raised by issuing T-bills and Treasury bonds in the domestic market. The remaining MVR 12.3 billion, of the total MVR 16.3 billion budget deficit, will come from external markets.

The ministry announced earlier this month that it would raise MVR 8.5 billion from external sources.