Relief Around the World as US Avoids Debt Default

Image: Relief Around the World as US Avoids Debt Default IMF managing director Christine Lagarde.

Thursday, 17 Oct 2013 05:10 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

BEIJING — The International Monetary Fund (IMF) appealed Thursday to Washington for more stable management of the nation's finances as Asian stock markets rose after U.S. leaders agreed to avoid a default and end a 16-day government shutdown.

With only hours to spare until the $16.7 trillion debt limit was reached, Congress passed late Wednesday and President Barack Obama quickly signed legislation to allow more borrowing and reopen government agencies.

"World heaves sigh of relief as U.S. barely averts debt default," said the Times of India newspaper in a headline.

IMF managing director Christine Lagarde welcomed the deal but said the shaky American economy needs more stable long-term finances. The deal only permits the Treasury to borrow normally through Feb. 7 and fund the government through Jan. 15.

Editor's Note: Gov. Prohibited From Helping Seniors (Shocking)

"It will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner," Lagarde said in a statement.

The Tokyo stock market, the region's heavyweight, gained as much as 1.1 percent. Markets in China, Hong Kong and South Korea also rebounded from losses.

China and Japan, which each own more than $1 trillion of Treasury securities, appealed earlier to Washington for a quick settlement. There was no indication whether either government had altered its debt holdings.

China's official Xinhua News Agency had accused Washington of jeopardizing other countries' dollar-denominated assets. It called for "building a de-Americanized world," though analysts say global financial markets have few alternatives to the dollar and U.S. government debt for trading and holding currency reserves.

Asian companies and investors had expressed confidence the United States would avoid a default. But had sold Treasurys to avoid possible losses if Washington delayed repayment. Others put off buying stocks that might be exposed to a U.S. downturn.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Trapped UN Peacekeepers Safely Rescued in Golan Heights

Saturday, 30 Aug 2014 12:23 PM

Nearly three dozen U.N. peacekeepers from the Philippines who had been surrounded for days by Islamist militants on the  . . .

Russian Tanks Flatten Town as EU Readies Sanctions

Saturday, 30 Aug 2014 11:57 AM

Ukraine said on Saturday Russian tanks had flattened a small border town and pro-Russian rebels had made fresh gains in  . . .

22 Trapped Gold Miners Rescued in Nicaragua

Saturday, 30 Aug 2014 07:55 AM

Nicaraguan rescuers have saved 22 of at least 26 workers trapped in a mine collapse and were working Saturday to free th . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved