“United States avoids default of payment with last-minute agreement between Biden and Republicans”

Will the United States avoiddefault of payment ? A few days before the deadline, US President Joe Biden and Republican leader Kevin McCarthy reached an “agreement in principle” on Saturday after long negotiations on the telephone this Saturday evening.

A first major step which should enable the country to avoid bankruptcy. The plan must still be validated by the House of Representatives, with a Republican majority, and the Senate, with a Democratic majority. Each in turn, they must vote on this agreement on Wednesday.

In a brief speech, Republican Leader Kevin McCarthy said the budget compromise was “ quite worthy of the american people “. He particularly welcomed the historical reductions of the public expenditure that the agreement provides according to him, which was the main demand of the Republicans.

This agreement makes it possible to avoid a ” catastrophic (payment) default “Reacted the Democratic President of the United States Joe Biden on Saturday in a press release. « This deal is a compromise, which means not everyone gets what they want “, he declared, assuring that the text, the detail of which is not known, “ reduced spending while protecting essential public programs ».

Debt ceiling

According to several American media, the agreement reached between the executive and the opposition raises for two years, after the presidential election of 2024, the public debt ceiling of the United States. The text of the agreement is to be released on Sunday after Biden and McCarthy meet again.

Without raising this ceiling, the first world power risked being in default of payment on June 5, unable to honor its financial commitments, whether salaries, pensions or reimbursements to their creditors.

Read more:  US President Joe Biden Strengthens Regulation of Firearms Trade

>> To read also: Will the United States default on its sovereign debt?

(With AFP)

2023-05-28 02:27:00

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