IMF applauds US debt resolve
(4 April 2011 – Global) International Monetary Fund (IMF) chief Christine Lagarde applauded the United States agreement to raise its debt ceiling and cut its deficit.
'We welcome the agreement to raise the US government's borrowing limit and cut the budget deficit,' Lagarde, managing director of the International Monetary Fund, said in a statement.
'By reducing a major uncertainty in the markets and bolstering US fiscal credibility, this agreement is good for both the US and the global economy,' she said.
'Raising the debt ceiling means a severe economic disruption has been avoided, and the accompanying deficit reduction deal is an important step toward fiscal consolidation.'
She also added that putting public finances on a sustainable path would entail identifying further savings in the entitlement spending as well as new revenues.
The comments came shortly after President Barack Obama signed into law the measure lifting the US$14.3 trillion (A$13.08 trillion) US debt limit by up to US$2.4 trillion (A$2.19 trillion) while cutting at least US$2.1 trillion (A$1.92 trillion) in government spending over the next decade.
'By reducing a major uncertainty in the markets and bolstering US fiscal credibility, this agreement is good for both the US and the global economy,' she said.
'Raising the debt ceiling means a severe economic disruption has been avoided, and the accompanying deficit reduction deal is an important step toward fiscal consolidation.'
She also added that putting public finances on a sustainable path would entail identifying further savings in the entitlement spending as well as new revenues.
The comments came shortly after President Barack Obama signed into law the measure lifting the US$14.3 trillion (A$13.08 trillion) US debt limit by up to US$2.4 trillion (A$2.19 trillion) while cutting at least US$2.1 trillion (A$1.92 trillion) in government spending over the next decade.
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