IMF Head Warns U.S. Of 'Massive Disruption' To World Economy

International Monetary Fund (IMF) Managing Director Christine Lagarde waves as she arrives to address the plenary session at the start of the annual IMF and World Bank fall meetings in Washington on October 11.

The head of the International Monetary Fund (IMF) has warned of a "massive disruption" to the global economy if the U.S. debt ceiling, which will be reached on October 17, is not lifted.

Christine Lagarde was speaking to U.S. television as Senate negotiations to bring the fiscal crisis to an end took place.

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Senate Majority Leader Harry Reid (Democrat) and Republican leader Mitch McConnell held talks that Reid later called "substantive."

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Earlier on October 13, McConnell issued a statement calling on Democrats to accept a bipartisan plan that would end the government shutdown and raise the borrowing authority.

As the impasse continued, China's state news agency Xinhua called for an end to the "pernicious impasse" and said it was time for a "de-Americanized world."

China is the largest foreign holder of U.S. debt.

Based on reporting by Reuters and dpa