U.S. will not default on debt: Geithner

08:11, July 25, 2011      

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The United States will not default on its financial obligations, U.S. Treasury Secretary Timothy Geithner said Sunday, urging Congress to reach an agreement now.

With the clock ticking down to the Aug. 2 deadline of an unprecedented default, U.S. lawmakers are still busy bargaining on the deal of raising the nation's debt ceiling as well as cutting deficit.

"It's unthinkable we would not meet our obligations on time," Geithner told CNN in an interview. "It's not going to happen."

Geithner acknowledged the decision on increasing how much money the government can borrow in order to avoid defaulting on its obligations already has been politicized, saying, "They (Republicans) have taken this a little too far, frankly."

"The most important thing is that we remove this threat of default from the country for the next 18 months" and "take this out of politics," he said.

The U.S. borrowing limit, currently at 14.29 trillion U.S. dollars, was reached on May 16 this year. The U.S. Treasury Department said the country would default without an agreement to lift the limit by Aug. 2.

If Congress fails to raise the debt limit before the deadline, it will cause another global financial tsunami, economists warned.

Geithner said President Barack Obama and House Speaker John Boehner, who quitted talks with Obama on Friday, are still talking.

The secretary also said there are signs that both sides are coming closer to an agreement. But he stressed the legislative process needs to get started by Monday night.

Source: Xinhua
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