Treasury Prepares for New Debt Deal

Published January 31, 2013

| Reuters

The U.S. Treasury Department said it will be ready to resume so-called extraordinary measures to ensure all debt obligations are met starting from May 19, a Treasury official said on Thursday.

A bill allowing the U.S. government to borrow money beyond its record $16.4 trillion debt limit won final Congressional approval earlier on Thursday. The bill, which needs to be signed by President Barack Obama, suspends the debt limit until May 19.

The U.S. first touched the debt limit on Dec. 31, and the Treasury Department began shuffling around funds to ensure the government could still make all its payments while Congress debated the debt limit.

Once Obama approves the legislation, the Treasury said it would start unwinding the measures it was using.

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