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WB President says US 'days away' from a 'very dangerous moment'

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(Credit: Reuters) The image shows World Bank President, Jin Yong Kim.World Bank
October 14
1:08 PM 2013

The World Bank President last Saturday warned the United States of being 'just days away' from causing global economic disaster unless its political leadership ends its impasse in raising its debt limit to avoid a first ever default.

According to World Bank President Jim Yong Kim during the press briefing after the WB Development Committee meeting, "We're now five days away from a very dangerous moment. I urge US policymakers to quickly come to a resolution before they reach the debt ceiling deadline... Inaction could result in interest rates rising, confidence falling and growth slowing."

He added, "If this comes to pass, it could be a disastrous event for the developing world and that will in turn greatly hurt developed economies as well."

The remarks comes from the largest multilateral agency in the world after three days of discussions with other financial agencies like the International Monetary Fund. The current impasse is a result of the refusal to approve legislation to increase the US borrowing threshold by Thursday and the government would be facing the effects of defaulting on its debt if Congress fails to raise the USD16.7 trillion borrowing limit.

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