The US Treasury Department has been told it is likely it will receive $16 billion in interest payments over the next five years to pay for the government’s obligations to its creditors, according to a report in the Wall Street Journal.
The government is on track to collect $8.4 billion from creditors as of the end of 2019, including a $5.5 billion interest payment on the $3.5 trillion bill.
The Treasury Department had previously promised the payment would be made in January 2020, but it was delayed by an economic downturn.
The US Treasury has been struggling to repay its creditors and has been cutting back on its spending to offset a recession that has hit the economy hard.
It has also been trying to shore up its finances, but some of its creditors are worried about its ability to do so and want to keep the payments on the table.
The federal government is currently in a debt crisis.
Its budget deficit stands at $1.6 trillion.
In the latest round of debt negotiations, the US government proposed to reduce payments to the government creditors.
The Treasury Department rejected the proposal, saying it was a non-starter.
In its report, the WSJ said the Treasury Department’s proposal was the most lenient the US has ever offered in its debt negotiations with creditors.
It said the amount of interest owed on the debt could be $16,600 for every dollar of federal revenue, and the Treasury has proposed that payments be made monthly.
The debt has also increased by $10.9 billion, the report said.
The amount of the interest owed will be determined by the terms of the agreement, which include interest rates.