SACRAMENTO, July 27 (UPI) -- California officials have lined up a $5.4 billion loan as a backstop should Congress fail to raise the federal debt ceiling and send the nation into default.
Business Law Daily reported Wednesday state Treasurer Bill Lockyer said he secured the financing package from eight banks, credit union and investment funds Tuesday.
The bridge loan would be used to help California deal with "immediate, drastic consequences" should the federal government fail to raise the federal debt ceiling by the Aug. 2 deadline set by the Treasury Department.
"I'm hopeful Congress and the president will do the responsible thing, solve the problem before it's too late and not risk pushing the country into a financial and economic abyss," Lockyer said.
State officials are concerned the impasse could affect federal transportation payments and the state's Medicaid program, Business Law Daily reported.
