The International Monetary Fund warned Thursday of grave consequences if the United States defaults on its debt as the deadline approaches for the country to raise or suspend its debt ceiling.
“Our assessment points to the possibility of very serious consequences not only for the United States, but also for the global economy in the event of a default by the United States,” Julie Kozak, director of public relations for the International Monetary Fund, told reporters, urging all stakeholders to resolve question properly.
In January, the US Treasury notified Congress that it was beginning to implement “extraordinary measures” as a result of raising the debt ceiling to $31.381 trillion.
The White House, for its part, called on Congress to unconditionally raise this figure, but the House of Representatives, controlled by the Republican opposition, linked this measure to the need for budget cuts and cuts in public spending.
In turn, Treasury Secretary Janet Yellen previously warned that the government would not be able to continue to meet all of its obligations until June 1 if a decision on the national debt is not made.
Source: AFP.
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