Geithner secures more time to break US budget stalemate

Gerald · 05-03-11, 05:45 AM

US Treasury Secretary Timothy Geithner has secured more time for Congress to negotiate a deal to increase the borrowing limit of the US.

Stalemate over the talks means the US risks defaulting on its debts because it will be unable to borrow beyond its $14.3 trillion (£8.6tn) limit.

Mr Geithner had previously said the deadline for a deal was 8 July.

But in a letter to Congress he said that better tax receipts meant the deadline could be extended to 2 August.

Republicans want to tie any agreement on the US budget to spending cuts, especially in the healthcare programme.

The Obama administration has proposed a $4tn package of budget cuts, but the Republicans say they do not go far enough.

Despite pushing back the deadline, Mr Geithner nevertheless warned Congress of the need for a urgent resolution to the impasse.

He said in his letter: "While this updated estimate in theory gives Congress additional time to complete work on increasing the debt limit, I caution strongly against delaying action."

http://www.bbc.co.uk/news/business-13264170

Note: 3 May 2011 Last updated at 08:59 GMT

05-03-11, 05:45 AM	#1
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	Geithner secures more time to break US budget stalemate US Treasury Secretary Timothy Geithner has secured more time for Congress to negotiate a deal to increase the borrowing limit of the US. Stalemate over the talks means the US risks defaulting on its debts because it will be unable to borrow beyond its $14.3 trillion (£8.6tn) limit. Mr Geithner had previously said the deadline for a deal was 8 July. But in a letter to Congress he said that better tax receipts meant the deadline could be extended to 2 August. Republicans want to tie any agreement on the US budget to spending cuts, especially in the healthcare programme. The Obama administration has proposed a $4tn package of budget cuts, but the Republicans say they do not go far enough. Despite pushing back the deadline, Mr Geithner nevertheless warned Congress of the need for a urgent resolution to the impasse. He said in his letter: "While this updated estimate in theory gives Congress additional time to complete work on increasing the debt limit, I caution strongly against delaying action." http://www.bbc.co.uk/news/business-13264170 Note: 3 May 2011 Last updated at 08:59 GMT __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie