The Ministry of Finance has announced the upcoming sale of Treasury bills (T-bills) totaling USD 273 million to support government expenditures. This issuance will consist of four separate T-bills.
The offerings include a T-bill of USD 123.7 million maturing in 28 days, a T-bill of USD 11 million maturing in 98 days, a T-bill of USD 54 million maturing in 182 days, and a T-bill of USD 78 million maturing in 364 days. The interest rates on these T-bills range from 3.50% to 4.60%, and they will be sold on October 20.
T-bills are short-term financial instruments issued at discounted prices in local currency, with the face value paid back at maturity. While this structure benefits investors, it does not directly benefit the state. Typically, these T-bills are purchased by banks, the Maldives Pension Administration Office, and various public and private companies.
Additionally, the government is planning to introduce measures to boost revenue. Proposed amendments to existing laws have been submitted to Parliament, including increases in three taxes: the Tourism Goods and Services Tax (TGST) on tourism facilities. Changes will affect the Value Added Tax Act, the Maldives Tourism Act, and the Maldives Airport Tax and Fees Act, resulting in higher rates for TGST, green tax, and airport development tax and fees.
If the proposed amendments pass, they are expected to generate an additional USD 169 million in revenue and contribute up to a 3% annual increase in national productivity or GDP, according to the finance ministry.