US debt limit to be reached late 2012

Written By Unknown on Rabu, 31 Oktober 2012 | 21.29

US Treasury officials say they still expect the government will hit the current debt borrowing limit at the end of this year.

But they say they can employ "extraordinary" measures they have used in the past to keep the government functioning until sometime early next year.

In a statement, Treasury Assistant Secretary Matthew Rutherford said Treasury would employ the same types of procedures it had used in the past to keep borrowing under the current debt limit of $US16.39 trillion ($A15.88 trillion). The nation's debt currently stands at $16.16 trillion.

The United States has never failed to meet its debt obligations although the last battle over raising the debt limit in August 2011 went right to the last minute before a compromise was reached between the Obama administration and Congress.


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