The government has raised MVR 350 million via an Islamic Treasury Bill or T-Bill by using Olympus and Velana Building as security.
An Islamic Instrument was issued this June to manage the expenses of the government. Finance Minister Ibrahim Ameer said that the ministry is working on increasing the opportunities for Islamic Financing in the Maldives and the issuance of the first Islamic T-Bill was a huge step towards that.
Moreover, he added that the government is trying to create a pool of assets to issue Islamic Instruments to manage the expenses of the government and fund more projects in the future,
Issuing Islamic Instruments instead of Conventional Instruments decreases the probability of losses and repayment amount, as these are compliant under the Shariah Law and would not include interest.
The government has sold two Sukuks earlier this year to pay back the Sunny Side bond obtained by previous administration.