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Failure of raising debt ceiling "not an option": Geithner

07-13-2011 16:49 BJT

WASHINGTON, July 12 (Xinhua) -- The Obama administration is engaged in talks with the Congress on a deficit reduction agreement, and the nation's debt limit will be raised, U.S. Treasury Secretary Tim Geithner said here on Tuesday.

U.S. Treasury Secretary Timothy Geithner talks about the debt crisis on "Face the Nation" in Washington July 10, 2011. Geithner on Sunday said Republicans and Democrats know that "failure is not an option" and a debt agreement must be reached. (Xinhua/Reuters Photo)

"Failure is not an option. Both sides understand what is at stake and will come to an agreement," he said at a finance symposium held here on Tuesday.

He reiterated the administration's stance that a sound debt reduction deal should help "preserve the recovery in the near-term and reinforces the foundations for growth in the long-term."

"The president has made it clear he wants to do the largest deal possible. And he's put forward a number of things that are very difficult for him politically. He's willing to achieve savings across government from defense to entitlements as long as they are done responsibly, over time," he noted.

U.S. Treasury Secretary Timothy Geithner talks about the debt
crisis on "Face the Nation" in Washington July 10, 2011.
(Xinhua/Reuters Photo)

The federal government's borrowing limit, currently at 14.29 trillion U.S. dollars, was reached on May 16 this year. The U.S. Treasury Department warned the world's largest economy would default without an agreement to lift the limit by Aug. 2.

Obama was scheduled to host a new round of talks with top Congressional leaders on Tuesday afternoon, but experts said a deal remained unlikely unless both parties made concessions on some thorny issues including tax increases.

Editor:Wang Xiaomei |Source: Xinhua

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