The United States has so far avoided default Бизнес.dir.bg

The government could meet its obligations until October 18. Its eventual insolvency would immediately hit the markets

The US House of Representatives today adopted a temporary increase in the government debt limit. The congressmen thus ensured that the federal government would continue to pay its debts in full until December 3 and temporarily avoided a default (insolvency) that would have severe consequences for the economy, world agencies reported.

The $ 480 billion increase was approved by the Senate last week. Following its adoption by the House of Representatives, President Joe Biden will be able to sign the law this week.

Finance Minister Janet Yellen had earlier warned that measures to avoid a default on sovereign debt would be exhausted by next Monday, October 18th. Soon after that date, the ministry would no longer be able to fully cover the government’s financial obligations.

A default would immediately affect global financial markets, which are built on the security offered by US sovereign bonds. Routine government payments for social benefits, disabled veterans and active-duty military personnel would be in question.

However, the relief provided by the new law is only temporary and the issue will have to be reconsidered by Congress in December.

–