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.
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
"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.
Date created : 2011-07-31