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Gov't to issue USD 156 million in treasury bills

The Ministry of Finance has announced the sale of Treasury bills (T-bills) worth USD 156 million to support government expenditures. This will involve the issuance of four T-bills totaling the same amount.

The T-bills will be offered for sale on October 6. The details of the T-bills include: a T-bill valued at USD 18.8 million, payable in 28 days; a T-bill worth USD 18 million, due in 98 days; a T-bill of USD 56.8 million, maturing in 82 days; and a T-bill valued at USD 64.8 million, which will be payable in 364 days. The Ministry has indicated that the interest rates on these T-bills will range from 3.50% to 4.60%.

T-bills are short-term financial instruments issued at discounted prices in the local currency, with the face value payable at the end of the specified term. While this benefits investors, the structure is not designed to directly benefit the state. Typically, the T-bills are purchased by banks, the Maldives Pension Administration Office, and both public and private companies.

In addition to the T-bill issuance, the government plans to implement several revenue-boosting measures. These include adjusting airport taxes and fees, increasing duties on unhealthy products, revising the GST Administrative Act to broaden the tax base, and modifying green tax rates. The government aims to create a growth-oriented budget for 2027, supported by these and other revenue-generating initiatives.