US Suspends State, Local Gov't Securities Prior to Monday Debt Deadline

US Treasury Secretary Jack Lew said that the outstanding US debt will reach the statutory limit on Monday and the US Treasury Department has stopped issuing state and local government securities in expectation of the date.

WASHINGTON (Sputnik) — The outstanding US debt will reach the statutory limit on Monday and the US Treasury Department has stopped issuing state and local government securities in expectation of the date, US Treasury Secretary Jack Lew said in a letter to US House Speaker John Boehner.

“Beginning on Monday, March 16, the outstanding debt of the United States will be at a statutory limit,” Lew said on Friday. “In anticipation of reaching that date, Treasury has suspended until further notice the issuance of State and Local Government Series securities.”

Lew explained the US Treasury Department will start a “debt issuance period” regarding Civil Service Retirement and Disability Fund investment, while it has suspended the daily reinvestment of Treasury securities held by the Thrift Savings Plan.

“These actions have been employed during previous debt limit impasses,” Lew said.

Lew added that US Congress’ job is to protect the full faith and credit of the United States and urged the legislative body to extend immediately the nation’s borrowing limit.