The Australian government has said it plans to raise the country’s debt limit by two-thirds to allay concerns it could face a future fiscal crisis.
The newly-elected conservative government is looking to raise the borrowing limit to A$500bn ($486bn; £300bn). Australia is forecast to reach its current A$300bn ceiling in December.
Treasurer Joe Hockey said that he wanted to avoid a crisis similar to the recent US fiscal emergency. “The debt limit needs to be set so as to provide sufficient headroom to ensure there is stability and certainty for the financial markets about the government’s capacity to finance its operations for the foreseeable future,” Mr Hockey said.
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