The US Senate passed a bill on Thursday to raise the debt ceiling by $31,4 trillion.
The law was negotiated by the presidents of the United States of America (USA) and Congress, Joe Biden and Kevin McCarthy, reports SEEbiz.
The Senate voted with 63 votes "for" and 36 "against" the law that passed the House of Representatives on Wednesday after months of disagreements between Democrats and Republicans.
The Ministry of Finance warned earlier that it will not be able to pay its obligations if the measure is not adopted by June 5.
"Tonight we avoid default," said Senate Majority Leader Chuck Schumer.
Ahead of the vote, senators rejected a dozen amendments, sending the bill to Biden for signature before the deadline.
Under the new law, the federal borrowing limit will be suspended until January 1, 2025.
Biden said the bipartisan agreement is a big win for the American economy and people.
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