WASHINGTON May 25 U.S. Treasury Secretary
Timothy Geithner on Wednesday dismissed the possibility of a
U.S. government default, despite a tough stance taken by some
Republicans in budget negotiations.
"Let me just say it clearly: This country will never
default on its obligations," Geithner said in a live interview
with Politico. "It would be a catastrophic failure of basic
governance to do that," he said.
"Congress will do what it has always done, which is to pass
the debt limit. So, our plan is for Congress to pass the debt
limit. Our fallback plan is for Congress to pass the debt
limit, and our fallback to the fallback plan is for Congress to
pass the debt limit."
Asked if that comment really meant the U.S. government had
no contingency plan, Geithner repeated his confidence that
Congress would not allow a default.
(Reporting by Doug Palmer; Editing by James Dalgleish)