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Article: Rubin: U.S. Would Divert Payment to Avoid Default; Retirement Fund to Get IOU for Interest Money Under Plan
- Article from:
- The Washington Post
- Article date:
- December 14, 1995
- Author:
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Treasury Secretary Robert E. Rubin said yesterday he will divert a
$14.5 billion interest payment due a federal retirement fund to keep
the Treasury from defaulting at the end of this month should Congress
refuse to increase the debt limit.
Use of the payment, owed to the $360 billion-plus Civil Service
Retirement Fund, would keep the Treasury below the current $4.9
trillion ceiling on federal borrowing authority "until the end of
January and possibly into the first week of February," Rubin said at
a hearing of the House Banking Committee.
Ordinarily, the treasury secretary must invest the entire year-
end interest payment to the retirement fund in government securities,
thus reducing by the ...