WASHINGTON Feb 1 President Bill Clinton called on Congress to raise the government debt ceiling to avert default on March 1, describing the problem as an emergency. reports AFP

"I think it s terribly Important that Congress pass a clean debt ceiling and do it immediately so that we can honour the full faith and credit of the United States." he said.

The Republican-led Congress has used debt-limit legislation as leverage in their ongoing negotiations with Clinton for a balanced federal budget in seven years.

"1 think we have got to deal with the debt ceiling.' Clinton told a congressional hearing Tuesday on raising the federal debt ceiling.

"But it is imperative that we understand what the

timetable is on the debt limit and that we not play games with that, that's an emer gency."

Treasury Secretary Robert Rubin said recently he would be powerless to stop the first default in history on its debt by the US government after February 29th without a congressional vote to raise the debt ceiling.

The current US debt ceiling stands at 4.9 trillion dollars. It was reached in November, but Rubin evaded default by borrowing 14.5 billion dollars from the civil service retirement fund, which falls outside the scope of publicly issued debt and do not count against the debt ceiling.

Members of the Republican-led Congress have said they are willing to raise the debt ceiling but many insist

on attacking additional measures to the bill which would likely force President Clinton to veto the measure as he did in November.

Time is short for Congress which adjourns at the end of this week until February 26. only three days before the payment cutoff date announced by Rubin.

White House Budget Director Alice Rivlin said earlier the economy could be pushed into recession if the US defaults of its debt obligations.

"I cant’ predict the consequences. but we could have a spike in interest rates that would tip US into recession."

Deputy Treasury Secretary Lawrence Summers said a default "could cause severe international financial difficulties.”

Investors would lose con-

fidence in US financial Instruments. foreign exchange markets could experience instability and foreign economies could be damaged by resulting currency and Interest rate shocks, he said.

"There is no way of avoiding the fact that If a clean debt limit bill is not enacted by March I at the very latest, the United States will Join Myanmar, Angola. Argentina. Venezuela. Brazil. Vietnam and Russia on the short list of nations that have defaulted on their own currency." Summers said.

Rubin said one immediate consequences of default would be felt by millions of pensioners around the country. since all social security cheques for March issued and mailed on February 26 would bounce.