UN continues to face cash crisis, could close the year with greater arrears than in 2019

United Nations spokesperson Stephane Dujarric during a press conference on Wednesday, vember 11 said that global organisation is experiencing a severe short of funds. He furr ded that it may be left with greater outstanding contributions by end of 2020 as compared to 2019.

Earlier in October, UN Secretary-General Antonio Guterres h informed that organisation is going through a severe budget crisis. He also put in a few measures to help crisis, which included restricting travel of staff, limiting heating and air-conditioning services and justing hiring practices to curtail spending. 

UN facing a financial crisis 

According to reports, Dujarric said, " liquidity crisis continues. We will probably end up with greater arrears at end of this year than we h last year and forcing to borrow from or funds, including close peacekeeping missions." He furr ded that organisation has frozen hiring process in all departments to deal with financial crisis. As per reports, UN has also asked manrs to push back some investment. 

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In a media statement last month, Guterres h warned that global organisation won't be able to pay its bills and salaries if debtor nations don't cough up ir unpaid dues. He h furr informed UN budget committee that organisation is facing a "severe financial crisis", outlining a budget of $2.87 billion next year.

Though countries are likely to pay a large portion of dues by end of year, unpaid dues stand at $1.3 billion which is an alarming amount. UN Secretary-General furr termed deficit to be deepest in dece. In such a situation, UN risks exhausting peacekeeping cash reserves. 

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As per reports, even war-struck Syria is paying its dues, yet 129 out of 193 UN nations are still in line with debts amounting to billions of dollars. Amongst all, US is both largest dor and largest debtor.

According to figures provided by US mission to UN, country owes $381 million from prior budgets and $674 million for regular budget. US also owe an ditional $2.6 billion for active peacekeeping missions. One of reasons behind such huge debts is fiscal years of US and UN. United Nations runs its budget on a calendar year while US fiscal year begins in October.

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(Im Credits: AP)