Congress approves debt deal, averting a US default

The US Congress has approved a deal to lift the country’s borrowing limit, days before the world’s largest economy is due to default on its debt, the BBC reports.

The bipartisan measure sped through the Senate by a vote of 63-36, a day after it cleared the US House of Representatives.

President Joe Biden has said he will enact the measure into law.

His signature on the bill will spare the US from a catastrophic default on its $31.4tn debt.

The country is forecast to overshoot its current debt ceiling on Monday 5 June.

A default would limit the government’s ability to borrow more money or pay all of its bills. It would also threaten to wreak havoc overseas, affecting prices and mortgage rates in other countries.

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