Treasury takes last-ditch measure to stay solvent

Reuters News
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Posted: Jul 15, 2011 3:39 PM
Treasury takes last-ditch measure to stay solvent

WASHINGTON (Reuters) - The Treasury said on Friday it would take the last step at its disposal to continue borrowing money in capital markets as Congress battles over raising the country's debt ceiling.

The previously announced decision to stop investments into the Exchange Stabilization Fund, a pool of money set aside as a contingency for possible instability in currency markets, will give the Treasury an additional $23 billion of wiggle room in spending.

"Congress must enact a timely increase of the debt ceiling," the Treasury said in a statement.

(Reporting by Pedro Nicolaci da Costa, Editing by Chizu Nomiyama)