Warning on US debt-ceiling deadline

Warning on US debt-ceiling deadline

WASHINGTON

Worries about a possible U.S. debt default cast a pall over weekend meetings of global financial leaders in Washington. But they ended with some hope over signs that the U.S. and European economies are pulling out of long slumps.

During three days of talks revolving around meetings of the 188-nation International Monetary Fund and its sister lending agency, the World Bank, top officials pressed the U.S. to resolve the political impasse over the debt ceiling. The standoff has blocked approval of legislation to increase the government’s borrowing limit before a fast- approaching Thursday deadline.

U.S. Treasury Secretary Jacob Lew has warned that he will exhaust his borrowing authority Thursday and the government will face the prospect of defaulting on its debt unless Congress raises the $16.7 trillion borrowing limit.

“We are now five days away from a very dangerous moment,” World Bank President Jim Yong Kim warned at the closing news conference Saturday. “I urge U.S. policymakers to quickly come to a resolution before they reach the debt-ceiling deadline.”

Associated Press