US Senate approves debt deal, averts government default

The US Senate has passed a deal struck between Republicans, Democrats and President Barack Obama to increase the US debt ceiling and avert a debt default by the government.

The Senate passed the bill, which raises the debt limit of the US government by up to $2.4 trillion from $14.3 trillion, and makes savings of at least $2.1 trillion in 10 years, by 74 votes to 26.

President Obama is due to speak shortly and then sign the deal into law.

The vote on the long-drawn out negotiations between the ruling Democrats and opposition Republicans came 12 hours before Washington was due to run out of time to clear its budget woes.

The deal effectively raises the ceiling on US government debt to $16.7 trillion, enabling it to meet all its bills, according to the US treasury department.

Senate Republican leader Mitch McConnell praised the direction of the legislation, saying Congress had "engaged in an important debate" in recent weeks.