Mexico urges U.S. to reach deal on raising debt ceiling

Reuters

MEXICO CITY, Oct 8 (Reuters) - Mexico's finance ministerurged the United States on Tuesday to reach an agreement onraising its debt ceiling, saying a failure to do so couldseriously damage financial markets and the global economy.

"(This) has the potential to enormously affect financialmarkets and therefore not just the United States' economy butalso the economies of the rest of the world," Finance MinisterLuis Videgaray told Mexican radio.

"It's an event that could be so serious that I think we alltrust that the lawmakers and the executive of the United Stateswill find the means to reach an agreement," he added.

The U.S. Congress has so far failed to strike a deal toraise the government's borrowing cap, which is set to expire onOct. 17. Treasury officials have said hitting that limit anddefaulting on government obligations could cause lasting harm tothe United States' international reputation.

Markets have been roiled and the dollar is near its recenteight-month low against other major currencies as U.S. lawmakersstruggle to find a solution to both the debt ceiling and thegovernment shutdown, now in its second week.

U.S. President Barack Obama has said a default on thecountry's debts could have a major negative impact on the U.S.and world economies.

The United States is Mexico's top trading partner, thedestination of about 80 percent of Mexican exports.

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