US President Barack Obama said Monday an agreement was reached with Republicans to raise the debt ceiling.
The agreement envisages raising the US debt limit by $2.4 trillion in three stages and cutting spending by about $1 trillion in 10 years, RIA Novosti reported.
"I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default, a default that would have had a devastating effect on our economy," he said.
The president said the bill will be approved soon.
If the US Congress does not vote to raise the current debt ceiling of $14.3 billion by Tuesday, the government is likely to default on its financial obligations and the country's economy may plunge into recession.