UN Secretary-General Antonio Guterres warns of severe liquidity crisis

UN Secretary-General Antonio Guterres has warned that world organisation is facing a severe liquidity crisis, reaching its deepest deficit of dece and will t have eugh cash by next month to cover payrolls. As he sounded a dire warning on world organisation's financial situation, Guterres called on 193 Member States to pay ir financial dues on time.  

" Organisation is facing a severe financial crisis. To be more specific, a severe liquidity crisis. equation is simple: without cash, budget cant be properly implemented, Guterres said Tuesday in remarks to General Assembly's Fifth Committee, which deals with ministrative and budgetary issues, on Proposed Programme Budget for 2020. 

December – Deepest deficit in a dece 

Guterres warned that in current month, organisation will reach deepest deficit of dece. "We risk exhausting closed peacekeeping cash reserves, and entering vember without eugh cash to cover payrolls. As I introduce 2020 program budget proposals, I reiterate my call on you to recommit to paying your financial obligations on time and in full,” he said as he thanked those Member States that have paid ir financial dues on time and those that continue to make every effort to do so, twithstanding difficult ecomic conditions y face.  

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‘Ease structural impediments’ 

"I equally urge you to consider measures to ease structural impediments preventing us from managing resources more effectively. UN Chief said that full and efficient implementation of UN's program of work depends on financial support of Member States through option of realistic budget levels and provision of timely contributions to ensure a stable financial situation throughout year. India has been among few countries to have fully paid its dues to UN on time. On or hand, UN owed India 38 million dollars, among highest it has to pay to any country, for peacekeeping operations as of March 2019. 

In April this year, Guterres h said in his report that in 2017 and 2018, 73 Member States h paid ir contributions in full by end of first quarter, compared with 62 in 2016 and 67 in 2015. He has expressed regret that some Member States pay neir in full r on time. level of arrears at end of 2018 was $529 million, equivalent to more than 21% of that year's assessments and nearly 150% of liquidity reserves.  

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Budget implementation depending on cash availability

United States is responsible for 22% of USD 5.4 billion regular budget for 2018 and 2019 and more than 28% of USD 6.7 billion peacekeeping budget for year to June 30. Guterres said that for current biennium, budget implementation is longer being driven by program planning but by availability of cash at hand. Among stringent measures being put in place to deal with financial situation, Guterres said that in 2019, manrs have been instructed to just ir hiring and n-post expenditures owing to liquidity constraints. This undermines mandate delivery and goes against our efforts to focus less on inputs and more on results, he said.  

January curtail was necessary 

Guterres stressed that UN's financial situation would have been much worse if he h t worked since January to curtail spending, align real vacancy rate with approved rate, and man cash on a month-by-month basis. Without se steps, we would t have h, I repeat, we would t have h liquidity to support opening of General Assembly debate and mandated high-level meetings last month, he said. Guterres said that he has been forced to introduce extraordinary measures to cope with record-level short of cash. se include vacant posts t getting filled and travel limited to essential travel only. Furr, meetings may have to be cancelled or deferred, webcasting of n-mandated events will t be available, and support to meetings will have to be justed.  

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unnecessary event after 6 pm 

UN Secretariat will also longer be able to support any n-mandated events after 6 pm, a decision that affects operations in New York, Geneva, Vienna, and Nairobi and at regional commissions. Our work and our reforms are at risk, he said. Guterres said that money could t be spent, as and when it was required, because UN did t receive it on time. He reiterated his call to Member States to t reduce requirements for 2020 based on past expenditure patterns. He also said that this would only worsen an alrey alarming situation. Inste, I urge you to allow us to use unspent balances -- even if y are small -- to supplement our liquidity reserves.  

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