US debt deal reached

By Lelethu Mquqo
1 August 2011

President Barack Obama has announced a last-minute deal to raise the United States borrowing limit and avoid a calamitous default.

He urged Congress to "do the right thing" and approve the agreement.

Just two days before a deadline to lift the so-called debt ceiling, the White House and congressional leaders said the compromise would cut about $2.5 trillion from the arrears over the next 10 years.

But allow Obama’s administration to carry on borrowing money until 2013.