Treasury bills and bonds rise to MVR17.6 billion, MMA reveals

The Maldives Monetary Authority (MMA) has revealed that the outstanding payments for treasury bills and bonds had risen to MVR17.6 billion at the end of 2014.

According to the Monthly Economic Review of December 2014, published yesterday (February 3), stocks of government securities comprising T- bills and T-bonds increased 22 percent and 55 percent, respectively, comparing monthly and yearly terms.

“As for the outstanding amount of T-bonds, it increased significantly in both monthly and annual terms and reached MVR6.4 billion compared to MVR3.1 billion recorded in November 2014,” the review stated.

The MMA’s economic review revealed that 103,744 tourists arrived in the Maldives in December 2014, which is 1 percent lower than the arrivals of the same period in 2013, due to the “decline in arrivals from Asia and Europe”, but an increase of 16 percent compared to November 2014.

Among Asian countries, China contributed the most tourists, with 363,000 of the 1.2 million visitors in 2014 – a year-on-year rise of 9.6 percent.

It was also noted that the occupancy rate of the Maldivian tourism industry as a whole decreased by two percent, from 76 percent in December 2013  to 74 percent in December 2014 due to the decrease in total bed nights by 3 percent, and the average duration of stay to 6 days.

Comparison of figures from November and December of 2014 suggest that there was a 12 percent increase in international reserves and a 17 percent increase in state revenue, leaving international reserves at US$614.7 million by the end of last year.

Reserves held at the end of November equated to 3.3 months of imports, compared to 2.3 months recorded at the end of November 2013, said the MMA.

“The increase in total revenue during December 2014 was largely due to a 32% growth in tax revenue (mainly contributed by the increase in T-GST receipts),” stated the monthly review.

Trade balance worsened by 42 percent in December 2014 compared to corresponding the same period in 2013, as imports rose by 34 percent while exports only increased by 11 percent.

“The growth in imports was mainly due to the increase in imports of transport equipment, while the growth in exports can be attributed to the rise in re-exports”.

According to a statement from Maldives Customs Services on January 14, imported goods in 2014 amounted to MVR30.7 billion – a 22 percent increase compared to 2013.

Customs figures also showed that the decline in exports saw the total value of goods leaving the Maldives in 2014 valued at MVR2.24 billion, compared with MVR2.56 billion in 2013.

(PICTURE: MMA MONTHLY ECONOMIC REVIEW – JANUARY 2015)

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