IMF calls for raising debt ceiling in more durable manner

The International Monetary Fund (IMF) has asked the US Congress to raise the debt ceiling in a more durable manner, as it welcomed the decision to pass a legislation which prevents the government default till early February next year.

PTI| Last Updated: Oct 17, 2013, 11:14 AM IST

Washington: The International Monetary Fund (IMF) has asked the US Congress to raise the debt ceiling in a more durable manner, as it welcomed the decision to pass a legislation which prevents the government default till early February next year.

"The US Congress has taken an important and necessary step by ending the partial shutdown of the federal government and lifting the debt ceiling, which enables the government to continue its operations without disruption for the next few months while budget negotiations continue to unfold," IMF Managing Director Christine Lagarde said.

"Looking forward, 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 after the US Congress passed the debt ceiling? deal.

"We also continue to encourage the US to approve a budget for 2014 and replace the sequester with gradually phased-in measures that would not harm the recovery, and to adopt a balanced and comprehensive medium-term fiscal plan," she said.

Meanwhile, World Bank President Jim Yong Kim has said that the decision of the US Congress to increase the debt ceiling is a good news for the developing countries and the world's poor.

"This is good news for developing countries and the world's poor.?The global economy dodged a potential catastrophe," Jim said in a statement after the US Congress passed a legislation that increased the debt ceiling.

"Going forward, we hope policymakers in all countries continue to focus on crafting and implementing policies that promote economic growth and boost jobs and opportunity for all," the World Bank President said in a statement.