The Republican Party of the United States and the administration of the American president have reached an agreement in principle to increase the public debt. It is reported that this would prevent a possible default in the country.
“House Republicans have reached a tentative agreement with the White House on debt limits,” reports RIA Novostiquoting a correspondent from a local publication.
It was noted that Republican congressmen will hold an online meeting after a phone conversation between US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy.
The expansion of the national debt limit depends on the authorization of the US Congress. Without this increase, the White House may not be able to meet its financial obligations in early June. It is also said that the Republicans who control the House of Representatives have agreed to increase the ceiling on the American public debt in view of the promise to limit budgetary spending given by the White House.
Earlier, the opinion of the US Treasury Secretary was quoted, confirming the risk of default in the US on June 1. She advised Congress and the White House to agree on an increase in the maximum level of public debt.
After that, they spoke of negotiations between the US administration and the Republicans, in particular to agree on a plan to raise the public debt ceiling. It is said that the parties sent each other “draft versions” of draft texts until the end of the evening of May 26 in order to avoid a default in the United States.
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