Don't miss

Replay


LATEST SHOWS

THE DEBATE

The Battle for Venezuela: Pressure mounting on Maduro ahead of sunday's vote

Read more

ENCORE!

Actress Helen Mirren on TV honours and tackling sexism

Read more

FOCUS

Teething problems for French President Macron's party

Read more

THE INTERVIEW

Libya's Haftar vows to deal with terrorists 'through weapons'

Read more

INSIDE THE AMERICAS

USA: Fierce battle over Kentucky's only abortion clinic

Read more

IN THE PAPERS

'Socks and selfies deep': Canadians slam Rolling Stone's Trudeau tribute

Read more

IN THE PAPERS

Panda-monium! French zoo awaiting rare panda birth

Read more

BUSINESS DAILY

Can Facebook keep growing its earnings?

Read more

THE INTERVIEW

Qatar 'financing and supporting terrorism', Egypt FM says

Read more

Americas

Republican leader says deal on debt is 'very close'

Text by News Wires

Latest update : 2011-07-31

US Senate minority leader Mitch McConnell (centre) said on Sunday that his Republican Party was "very close" to a deal with the Democrats on raising the debt ceiling ahead of an August 2 deadline. A key test vote is planned for Sunday afternoon.

REUTERS - U.S. lawmakers were close to a last-minute $3 trillion deal on Sunday to raise the U.S. borrowing limit and assure financial markets that the United States will avoid a potentially catastrophic default.

"We're very close," said Senate Minority Leader Mitch McConnell, the top Senate Republican who is playing a key role in the debt ceiling negotiations

Prospects improved for a significant package to cut the U.S. deficit after Republican and Democratic leaders reopened stalled talks with the White House.

A senior White House official cautioned that a deal was "not there yet."

McConnell, speaking on CNN's "State of the Union," said he hoped Senate Majority Leader Harry Reid, a Democrat, would be able to present an agreement soon that he can recommend to Republican senators. Asked if a deal would emerge on Sunday, he said, "Soon."

Democratic Senator. Charles Schumer said it seemed clear that the emerging deal would raise the debt ceiling enough "so we don't have to come back to this until 2013." A key demand of Obama was to not take up the issue in 2012, an election year.

Reid pushed back a key procedural vote on a debt limit plan by 12 hours to 1 p.m. EDT (1700 GM) on Sunday, buying time for both sides to hammer out details before Asia markets open in a few hours' time.

Major holders of US debt
© Chart courtesy AFP

"There are negotiations going on at the White House now on a solution that will avert a catastrophic default on the nation's debt," Reid said late on Saturday.

"There is still a distance to go," he said.

The political gridlock over how to reduce the U.S. deficit and raise the debt ceiling has put the United States at risk of losing its top-notch AAA credit rating.
 
Japan, the second largest holder of U.S. debt, was increasingly alarmed that the United States would miss the Tuesday deadline, sources familiar with Japan's fiscal affairs said.
 

Date created : 2011-07-31

  • USA

    Senate delays debt vote amid hopes of compromise

    Read more

  • USA

    US Congress deadlocked amid pleas for compromise

    Read more

  • USA

    Republicans to amend stalled US debt bill

    Read more

COMMENT(S)