Maldives is inviting development companies to invest in Treasury bonds, a departure from the usual practice of banks and large funds purchasing government securities. The move aims to diversify the investor base and attract more investment into key development sectors, part of broader efforts to revitalize the nation’s economy.
Abdulla Nazim Ibrahim, Principal Secretary to the President on Public Policy, explains that the focus is on companies actively investing in the country. Previously, Treasury bills were mainly bought by domestic financial institutions. Recently, the government listed T-bills on the local stock exchange to include individual investors, although there haven’t been any recorded bond purchases under this new arrangement.
This policy change comes amid economic challenges for the Maldives, with external debt reaching MVR 51 billion and domestic debt at MVR 68 billion as of the third quarter of 2023. By expanding access to Treasury bonds, the government aims to meet immediate financial needs and promote long-term economic growth through ongoing development projects.
