Ministry of Finance has revealed it is now responsible for overseeing domestic securities issuance. The issuance of domestic securities such as bonds and treasury bills will now be overseen by its debt management department, stated finance ministry.
Treasury bills and bonds were introduced in September 2006 as an alternative to printing money needed for the state, and to diversify the debt portfolio and expand the domestic market.
Domestic securities issuance was previously overseen by Maldives Monetary Authority (MMA). The transfer of responsibility of overseeing domestic securities issuance was announced at a ceremony to mark the successful implementation of centralising the treasury issuance.
Speaking at the ceremony, Minister of Finance Ibrahim Ameer said the finance ministry is continuing to improve the monetary system to international best practices, with assistance from the World Bank and MMA. As such, Minister Ameer noted the World Bank conducted a debt management performance assessment made in 2019 and recommended that the Maldives centralise its debt management. He said transferring the responsibility of overseeing domestic securities issuance to the finance ministry was part of the efforts to centralise debt management and will allow the development of the secondary market and the state's securities market.
Speaking at the ceremony, Governor of MMA Ali Hashim praised Minister Ameer for playing a crucial role in centralising domestic security issuance and highlighted the importance of managing public and private debt, especially during the COVID-19 pandemic.