Obama: US nears debt limit, needs 1.2 billion dollars
Washington - US President Barack Obama Thursday formally asked the US Congress for another 1.2 trillion dollars in borrowing authority for the federal government.
The request was part of a three-step-increase agreed upon between the White House and Congress in August, when Republican refusal to raise the debt ceiling brought the government to the brink of default.
The notification starts a 15-day clock running for Congress to respond. Under the agreement, Congress can only disapprove the request in a joint resolution - an action that could be vetoed by Obama.
A rejection is unlikely since Democrats still control the Senate.
If Congress does not pass a joint resolution rejecting Obama's request, the debt limit will by default rise by the amount requested, to a record 16.4 trillion dollars.
In his letter to Congress, Obama certified "that the debt subject to limit is within (100 billion dollars) of the limit."
The House of Representatives, which is controlled by Republicans, has slated its vote for Wednesday.
The high debt level is a key issue for the presidential elections. Republicans have blocked Obama and the Democrats' proposals to increase taxes on the country's most wealthy and cut spending. Instead, Republicans want drastic cutbacks in spending.//DPA
