United States said they would like to loan $3 billion in the second quarter as COVId-19-related relief packages affected its national budget.
The number of US-approved loans is more than five times that of the previous quarter, which was the equivalent of loans during the 2008 financial crisis.
The United States has approved about $ 3 billion in COVID-19 related relief, including health and direct payments.
In 2019, the country borrowed $ 1.28 trillion. US government debt totaled nearly $ 25 billion. The final cost package is estimated to be worth about 14 percent of the country’s economy. The government has also added an April 15 annual deadline for tax payments.
The new loan estimate is more than $ 3 billion more than the government’s previous estimate, a sign of the impact of the new program on stimulating its economy.
Talks are under way for further assistance, though some Republicans have expressed concern about the impact of greater spending on the country’s growing national debt.
The United States fund loan through the sale of government bonds. It is historically in favor of low interest rates as its debt is seen as low risk by investors around the world.
But even before the COVID-19 epidemic, the country’s debt burden was reaching a level that many economists consider a risk to long-term economic growth as the country spends more.
The US Congressional Budget Office last month predicted the budget deficit would reach $ 3.7 trillion this year as national debt exceeds 100 percent of gross domestic product. BBC