The U.S. Treasury Department has announced the launch of «extraordinary measures» after the country reached the legally permitted debt limit of $31.381 trillion (29 trillion euros) on Thursday.
In a letter sent to the Republican Speaker of the House of Representatives, Kevin McCarthy, as well as to the Democratic leader, Hakeem Jeffries, the Treasury Secretary, Janet Yellen, has informed that the period of time that the extraordinary measures may last «is subject to considerable uncertainty».
«I respectfully urge Congress to act promptly to protect the full faith and credit of the United States,» she added.
Among the measures announced, Yellen has explained that, due to the statutory debt limit, she will not be able to fully invest the portion of the Civil Service Retirement and Disability Fund (Csrdf) that is not immediately required to pay beneficiaries.
Thus, due to the legal limit reached, a «debt issuance suspension period» will begin this Thursday, which will be in effect until June 5, 2023.
«My predecessors have declared debt issuance suspension periods in similar circumstances,» Yellen has exposed, announcing that the Treasury Department will suspend further investments of the amounts credited and redeem a portion of the investments held by the Csrdf, as expressly authorized by law.
In addition, because the Postal Accountability and Enhancement Act of 2006 provides that investments in the Postal Service Retiree Health Benefits Fund (Psrhbf) will be made in the same manner as investments for the Csrdf, Treasury will suspend additional investments to the Psrhbf.
In this regard, he reminds that the Csrdf and the Psrhbf will be integrated once the borrowing limit is increased or suspended, stressing that retirees and federal employees will not be affected by these actions.
Source: (EUROPA PRESS)
