U.S. just days away from 'very dangerous moment': World Bank

WASHINGTON Sat Oct 12, 2013 6:27pm EDT

World Bank President Jim Yong Kim addresses the plenary session at the start of the annual IMF-World Bank fall meetings in Washington, October 11, 2013. REUTERS/Jonathan Ernst

World Bank President Jim Yong Kim addresses the plenary session at the start of the annual IMF-World Bank fall meetings in Washington, October 11, 2013.

Credit: Reuters/Jonathan Ernst

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WASHINGTON (Reuters) - The president of the World Bank on Saturday warned the United States was just "days away" from causing a global economic disaster unless politicians come up with a plan to raise the nation's debt limit and avoid default.

"We're now five days away from a very dangerous moment. I urge U.S. policymakers to quickly come to a resolution before they reach the debt ceiling deadline...Inaction could result in interest rates rising, confidence falling and growth slowing," World Bank President Jim Yong Kim said in a briefing following a meeting of the bank's Development Committee.

"If this comes to pass, it could be a disastrous event for the developing world, and that will in turn greatly hurt developed economies as well," he said.

(Reporting by Anna Yukhananov and Lidia Kelly; Editing by Andrea Ricci)

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Comments (14)
Perhaps interest rates should rise. Perhaps there really is risk in this world of ours?

Oct 12, 2013 9:44pm EDT  --  Report as abuse
BobThraher wrote:
The voices are getting more shrill: don’t stop the spending or we all die! Give me a break! Prioritize the debt and get to work on dismantling Obamacare and then we’ll raise the debt ceiling.

Oct 12, 2013 11:18pm EDT  --  Report as abuse
BioStudies wrote:
The World Bank is a political institution more than a financial one. The ignorant comments they make when they try to interject in US politics makes it obvious.

Oct 12, 2013 11:33pm EDT  --  Report as abuse
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