US debt deal prompts relief around the world

The deal only permits the Treasury to borrow normally through February 7 and fund the government through January 15.

Written by Associated Press | Beijing | Published: October 18, 2013 4:04 am

The International Monetary Fund appealed Thursday to Washington for more stable management of the nation’s finances as Asian stock markets rose after US leaders agreed to avoid a debt default and end a 16-day government shutdown.

IMF managing director Christine Lagarde welcomed the deal but said the shaky US economy needs more stable long-term finances. The deal only permits the Treasury to borrow normally through February 7 and fund the government through January 15. “It will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner,’’ she said.

Meanwhile,China’s government,Washington’s biggest foreign creditor with $1.3 trillion invested in Treasurys,welcomed the end to the standoff. “This issue concerns many countries in the world,’’ said a foreign ministry spokeswoman,Hua Chunyin.

“The United States is the biggest economy in the world. For them to handle the issue properly is to their own interest and beneficial to their own development.’’

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