Treasury Bills debt stands at over a third of annual budget: report

Government debt accrued through the sale of Treasury Bills to banks and commercial enterprises in the country is estimated to be equivalent to more than a third of this year’s Rf12bn national budget, according to Maldives Monetary Authority (MMA) figures.

Haveeru has reported that at present, Rf5bn of debt has been generated through the MMA’s sale of T-Bills, which are sold frequently to national businesses at interest rates recently set around 4.57 percent, 5.34 percent and 5.53 percent.

According to the report, Treasury Bills have been sold by the government since September 2006 initially as a short-term attempt to settle outstanding national debt.  An estimated Rf1.3bn is expected to be raised through the sale of T-Bills under the current national budget.