U.S. federal government to borrow 434 bln USD in H1

U.S. federal government to borrow 434 bln USD in H1
# 05 February 2013 01:04 (UTC +04:00)

Baku-APA. The U.S. Treasury Department announced Monday that the federal government expected to borrow 434 billion U.S. dollars from the market to fund its operation in the first half of this year, APA reports quoting Xinhua.

"During the January-March 2013 quarter, Treasury expects to issue 331 billion dollars in net marketable debt, assuming an end- of-March cash balance of 30 billion dollars. This borrowing estimate is 11 billion dollars lower than announced in October 2012," the Treasury said in a statement.

The Treasury also said that during the April-June 2013 quarter, it would issue 103 billion dollars in net marketable debt, assuming an end-of-June cash balance of 60 billion dollars.

The budget deficit of the U.S. federal government topped around 1.1 trillion U.S. dollars in the 2012 fiscal year ending in September, about 207 billion less than the 2011 fiscal year. But it was the fourth consecutive fiscal year that the U.S. federal government's budget deficit surpassed 1 trillion dollars.

Due to financial crisis and economic recession, borrowings of the U.S. government increased dramatically over the past three years. The U.S. federal government ran a record budget deficit of 1.41 trillion dollars in the 2009 fiscal year and a 1.29-trillion- dollar imbalance in the 2010 fiscal year.

"Growth is expected to pick up in the first quarter of 2013, despite some fiscal drag," Janice Eberly, Assistant Treasury Secretary for Economic Policy, said in a separate statement released Monday.

Eberly noted that other potential challenges this year include the risk of renewed setbacks in Europe, the impact of continued uncertainty about the U.S. fiscal situation, and the possibility of additional, sequester-related fiscal tightening.

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