Govt seeks proposals to raise MVR 8.5b to cover expenses
Proposals received throughout the year will be evaluated by a special committee, the finance ministry said.
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Finance ministry has invited proposals to obtain $550 million (MVR 8.5 billion) in debt to cover state expenditure.
In a statement, the ministry said on Tuesday that it was seeking a financial agency to provide the funds to the government as a loan or in the form of treasury bill (T-bill) investments, as part of its plan to raise funds for this year's budget.
The ministry said:
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Proposals were invited to make the government's borrowing rules more transparent
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Proposals received throughout the year will be evaluated by a special committee
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The information on the debt will be made public
The announcement added that the MVR 8.5 billion will be used to implement the government’s priority development projects, especially in fisheries, health and infrastructure development.
The requirements for submitting proposals for loans include:
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Be active in the financial sector within the last five years
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Be registered with the regulatory authority
The government needs MVR 16.3 billion this year to cover expenditure. The MVR 49.8 billion state budget approved for this year proposes:
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Sales of T-bills and Islamic instruments to the domestic market - MVR 3.1 billion
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Treasury bond sales to the domestic market - MVR 800 million
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Foreign borrowings - MVR 4.7 billion
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Foreign budget support loans, bonds and securities - MVR 6.9 billion
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Green or blue bonds - MVR 771 million
