Washington, Aug.1 (ANI): U.S. President Barack Obama on Sunday announced that Republican and Democratic leaders have reached an agreement on raising the country's debt limit and avoiding default.
"I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default, a default that would have had a devastating effect on our economy," Obama said.
Obama said the deal would cut one trillion dollars of spending over 10 years, and to set up a committee to report by November on a proposal to further reduce the deficit.
The US president said it was not the deal he would have preferred, but noted that the compromise plan would make a "serious down payment" on the US deficit.
Congress still has to approve the deal, and no votes are expected until Monday at the earliest, the BBC reports.
The US limits by law the total amount of debt its government can run up in order to pay its bills, and the Obama administration has been under mounting financial pressure.
Obama said the process of agreeing on a plan had been messy and had taken "far too long", and he called on parties to support the plan in votes in Congress.
He stressed that any solution had to be "balanced", and that cuts would not be so abrupt as to create a drag on the US economy.
The recommendations of the bipartisan committee tasked with identifying further savings by November would also be put to a vote in Congress, he said.
The focus now shifts back to Congress with votes expected on Monday. (ANI)
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