Arab Finance: US President Joe Biden signed legislation to raise the country’s debt ceiling until January 1st, 2025, averting a first-ever US debt default ahead of June 5th deadline, Bloomberg reported on June 3rd.
The legislation was signed days after it was passed by the House of Representatives and the Senate following weeks of tense negotiations with Republicans who refused to raise the country’s borrowing limit unless Democrats agreed to cut spending.
The deal suspends the US’ debt limit through the next presidential election in 2024, limiting federal spending for two years and allowing the government to renew borrowing to meet its obligations.
"The only way American democracy can function is through compromise and consensus, and that is what I worked to do as your president," Biden said, adding that “the American economy and the world economy is at risk of collapsing, there is no other way."
