DHAKA: Frantic US political attempts to avert a federal debt default have pivoted back to the Senate after plans in the House of Representatives collapsed.

Upper chamber leaders were said to be working through the night on a deal to raise the US borrowing limit and end a partial government shutdown.

Amid the congressional disarray, a top ratings agency warned of a possible downgrade in US creditworthiness.

The US must raise its $16.7tn debt limit by Thursday or risk default.

Politicians, bankers and economists have warned of global economic consequences unless an agreement can be reached.

The Democratic-controlled Senate took control on Tuesday night, working on a bipartisan deal that aides said would extend the federal borrowing authority until 7 February and fund the government through to 15 January.

Source: BBC
BDST: 1015 HRS, OCT 16, 2013
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