Deal reached, US to keep borrowing for five months

US Senators reach deal to keep borrowing till February, 2014 and avert hitting a deadline on its debt limit.

WASHINGTON: Republican and Democratic leaders in the US Senate struck an agreement Wednesday to end a fiscal impasse, hours before Washington would hit its debt limit, a senator said.

"I understand that they've come to an agreement," said Senator Kelly Ayotte, a Republican from New Hampshire.

Senate Majority Leader Harry Reid said Wednesday that a deal had been reached with Republican leaders to end a fiscal impasse that has threatened the United States with default.

Reid, speaking from the Senate floor, said the agreement called for reopening the federal government with a temporary budget until January 15 and to extend US borrowing authority until February 7.

The move allows the US government to end its shutdown which started on October 1, and has lasted for 16 days.