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Obama signs law to raise borrowing

President Barack Obama has signed into law a bill raising the government's borrowing limit, averting a default and delaying the next clash over US debt until later this year.

The legislation temporarily suspends the 16.4 trillion dollar (£10.4 trillion) limit on federal borrowing. Experts say that will allow the government to borrow about 450 billion dollars (£285 billion) to meet interest payments and other obligations.

The Senate gave the bill final approval last week and sent it to Mr Obama, who signed it shortly after returning from Minneapolis, where he was campaigning in favour of gun control laws.

Democrats and Mr Obama had warned that failure to pass the bill could set off financial panic and threaten the economic recovery.

The bill includes a provision attached by House Republicans that temporarily withholds politicians' pay in either chamber that fails to produce a budget plan.


From Belfast Telegraph