U.S. Treasury says default risks permanent damage to reputation

WASHINGTON (Reuters) - A senior U.S. Treasury official called on Congress on Tuesday to re-open the government and raise the debt ceiling or risk hurting the United States' international reputation as a safe haven and stable financial centre.

"We cannot become a nation where the threat of default is repeatedly used without incurring permanent damage to America's reputation, and raising the cost of credit for businesses and families, and for our government," the official told reporters ahead of a gathering of finance officials from the Group of 20 top economies in Washington later this week.