Government uses Olympus and Velana as assets to procure MVR 350 million

Ministry of Finance | Photo: Google

Male’, Maldives – The government of Maldives has for the first time held buildings Olympus and Velanaas assets to issue an Islamic T bill for MVR 350 million.

The MVR 350 million was procured by the government by issuing an Islamic Instrument this June. The money was used to manage the expenses of the government.

Noting that Maldives is a 100% Muslim country, Finance Minister Ibrahim Ameer stated that the ministry is working on increasing the opportunities for Islamic Financing in the financial sector. He noted that issuing a T bill away from the conventional rules was a huge success the country received.

Previous government created “Hazaana Maldives” to widen the Islamic Finance. But an asset pool is necessary to develop the Islamic Finance market.

Finance Minister Ibrahim Ameer

Minister Ameer stated that while an asset is required as security while issuing an Islamic Instrument, the government has been creating a pool of such assets. He added that the government intends to sell more Finance Instruments in the future by creating such pools.

Issuing Islamic Instruments instead of Conventional Instruments decreases the probability of losses from the amount that was invested. It also decreases the amount the government has to pay back.