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US to borrow USD 3 tln for coronavirus-related relief

Wednesday 6 May 2020 14:24 CET | News

The US has declared intentions to borrow USD 3 trillion in the second quarter of 2020, as coronavirus-related rescue packages blow up the budget.

The sum is more than five times the previous quarterly record, set at the height of the 2008 financial crisis. In all of 2019, the country borrowed USD 1.28 trillion. The US has approved about USD 3 trillion in virus-related relief, including health funding and direct payouts. Total US government debt is now near USD 25 trillion.

The US borrows by selling government bonds. It has enjoyed relatively low interest rates since its debt is viewed as relatively low-risk by investors around the world. America's central bank said spending now was essential to cushion the economic blow, as orders to shut businesses to slow the spread of the virus cost at least 30 million people their jobs.

For now, continued low rates suggest investor appetite for US debt remains, allowing for a borrowing increase, according to BBC.com.


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Keywords: US, government bonds, coronavirus relief, government loan, America central bank, US debt
Categories: Banking & Fintech | Payments General
Countries: United States
This article is part of category

Banking & Fintech