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, November 11 said that the global organisation is experiencing a severe shortage of funds. He further added that it may be left with greater outstanding contributions by the end of 2020 as compared to 2019.

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

UN facing a financial crisis 

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

Read: UN Faces "severe Financial Crisis", Donald Trump Dismisses Concerns

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

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

Read: United Nations 75th Anniversary: UN Officially Came Into Existence On This Day In 1945

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

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

Read: India Garners Big Victory At UN, Candidate Vidisha Maitra Secures Position In ACABQ

Also Read: UN, Member States Express Regret On Trump Administration's Withdrawal From Paris Accord

(Image Credits: AP)