US borrowing to surge after debt cap raised

August 2, 2011

The US Treasury said Monday that it will step up borrowing after the debt ceiling is raised, expected this week if a highly contentious legislation crafted over the weekend clears Congress.

In its quarterly funding plans, the Treasury said it expected to issue $331 billion in net debt in the July-September quarter, up from $190 billion in the previous period.

But the third-quarter forecast was $74 billion lower than originally forecast in May.

During October-December, the Treasury will borrow another $285 billion, it said. The projections assume it will have a cash balance of $100 billion at year-end.

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