Washington (EFE).- The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, demanded this Friday an agreement on the debt ceiling in the United States “as soon as possible” and asked the negotiating parties to address this problem “in a different way”.
Georgieva said that she has shared “her concern” with the US Treasury Secretary, Janet Yellen, and the Federal Reserve (Fed) Chairman, Jerome Powell, with whom she met this Friday, before presenting at a conference press the conclusions of the IMF report on the US economy.
“We are looking forward to seeing a resolution,” said Georgieva, who suggested the possibility of the United States eliminating the debt ceiling rule so that scenarios like the current one do not occur.
The director of the Fund expressed her hope for the “news” that the negotiations between the White House and the Republicans are “advancing”, but insisted on asking for a conclusion as soon as possible.
“We all know the tale of Cinderella, who has to leave the ball right at midnight. We are at that point, so before the carriage turns into a pumpkin, can we please figure this out?” she urged.
Increased US effort to reduce public debt
In any case, Georgieva stressed that the United States has to do “more” to reduce its public debt and make “great efforts to reduce its fiscal deficit.”
He stressed the need to undertake “significant” legislative reforms that incorporate tax increases on corporate profits or that address “imbalances” in programs such as Medicare or in systems such as Social Security.
The IMF presented its conclusions on the United States at a delicate moment for the world’s leading economy with the budget negotiation still unresolved and with a few days remaining for the country to exhaust its reserves and go into suspension of payments if there is no agreement.
Georgieva considered that this is a time of “significant uncertainty” because the Fund sees the US debt market as a “pillar” for the global financial system. And that pillar, she added, needs to be held “solidly.”
“Let’s not add damage to what the world economy already suffers,” he stressed.