US Congress passes debt deal bill; Obama signs to end shutdown

Washington, News Nation Bureau | Updated : 17 October 2013, 03:45 PM

United States of America President on Thursday morning signed a bill into law to end a disruptive 16-day government shutdown and increase the current debt ceiling of USD 16.7 trillion to prevent the country from a debt default with potentially worldwide economic repercussions.

Obama signed into law, the "Continuing Appropriations Act, 2014," which provides fiscal year 2014 appropriations for projects and activities of the Federal Government through Wednesday, January 15, 2014, White House Press Secretary Jay Carney said in a statement in the wee hours.

"The effective time for the continuing resolution begins on October 1, 2013," Carney said, adding that the law also extends the Nation's debt limit through February 7, 2014.

The bill was signed to prevent an imminent default as the United states would have lost control over the borrowing power by Thursday night.

"This is good news for developing countries and the world's poor. The global economy dodged a potential catastrophe," said World Bank President Jim Young Kim, reflecting the sigh of relief that the international community now has after the passage of the bill by the Congress.

By signing the Bill Obama saved some of the borrowing power for his country but its side effect may be seen soon on the sensex.

(with PTI inputs)

First Published: Thursday, October 17, 2013 03:41 PM

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