Finance Ministry Announces USD 273 Million Treasury Bills Sale to Fund Gov’t Spending

The Ministry of Finance has announced the sale of Treasury bills (T-bills) totalling USD 273 million to support government spending. 

This issuance will consist of four separate T-bills, set to be sold on 20 October. The offerings include a T-bill worth USD 123.7 million maturing in 28 days, another for USD 11 million maturing in 98 days, a T-bill of USD 54 million maturing in 182 days, and the largest, at USD 78 million, maturing in 364 days. The interest rates on these T-bills range from 3.50% to 4.60%.

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T-bills are short-term financial instruments issued at a discounted price in local currency, with the full face value paid upon maturity. Though this structure benefits investors, it does not directly benefit the state. Typically, T-bills are purchased by banks, the Maldives Pension Administration Office, and various public and private companies.

In addition to the T-bill issuance, the government is proposing measures to boost revenue. Amendments to existing laws have been submitted to Parliament, including increases in three taxes: the Tourism Goods and Services Tax (TGST) on tourism facilities, green tax, and airport development tax and fees. These changes will affect the Value Added Tax Act, the Maldives Tourism Act, and the Maldives Airport Tax and Fees Act.

If approved, the amendments are expected to generate an additional USD 169 million in revenue and contribute to a 3% annual increase in national productivity, according to the Ministry of Finance.