The United Nations Battles Bankruptcy

The United Nations for the first time in nearly 10 years goes short on funds; It was gathered on Tuesday the 8th of October, that The United Nations’ (UN) Secretary-General Antonio Guterres, told member states that the organization “runs the risk of depleting its liquidity reserves by the end of the month and defaulting on payments to member of staff and vendors.” In his statement to the assembly, he alleged that only 70 per cent of the total budget assessment for 2019, amounting to $1.99 billion, had been paid as of the end of last month, leaving a balance of $1.3 billion. The current figure is seen to have depreciated to eight per cent lower than the 78 per cent payment recorded in the same period last year. The UN Spokesperson Stéphane Dujarric quoted the Secretary in his speech to the budget-setting Fifth Committee of the General Assembly: “Unless more governments pay their annual dues, our work and our reforms are at risk.” He went further to make claims that the financial shortage in October could have reached 600 million dollars had the organization not “contained expenditures globally from the beginning of the year.” Dujarric made know to the UN correspondents in New York that although 129 of the 193 Member States had now paid their regular annual dues, others needed to pay “urgently and in full and this is the only way to avoid a default that could risk disrupting operations globally.” “The Secretary-General asked governments to address the underlying reasons for the crisis and agree on measures to put the United Nations on a sound financial footing,’’ he said. Dujarric assured that the cost-saving measures implored has enabled the UN to fund the General Assembly debate and the high-level meetings in September. In his words: “To date, we have averted major disruptions to operations, but these measures are no longer enough. The Secretariat could face a default on salaries and payments for goods and services by the end of November unless more Member States pay their dues in full. This is a recurrent problem that severely hampers the Secretariat’s ability to fulfill its obligations to the people we serve. We are now driven to prioritize our work on the basis of the availability of cash, thus undermining the implementation of mandates decided by inter-governmental bodies.’’ He said “the UN Secretary expected member states to resolve the structural issues responsible for the annual financial crisis without further delay.” The Secretary-General has however presented a 2.94 billion dollars budget proposal for 2010, same as the estimates for the present year. From the words of the spokesman, he assured that the UN Secretary’s plan represented a “profound reflection on the path ahead and deep commitment to our shared work.” The UN Secretary also said implementation of the budget was no longer being driven by planning, but according to “the availability of cash at hand.” He also added that “this undermines mandate delivery and goes against our efforts to focus less on inputs and more on results.” The United States has however been found missing on the list of Member States that have paid their regular budget assessments as seen on the UN website. President Donald Trump had reportedly alleged earlier this year, that the U.S. was bearing an “unfair burden” of the cost of the UN, and called on the organization to reform its operations. The United Nations for the first time in nearly 10 years goes short on funds; It was gathered on Tuesday the 8th of October, that The United Nations’ (UN) Secretary-General Antonio Guterres, told member states that the organization “runs the risk of depleting its liquidity reserves by the end of the month and defaulting on payments to member of staff and vendors.” In his statement to the assembly, he alleged that only 70 per cent of the total budget assessment for 2019, amounting to $1.99 billion, had been paid as of the end of last month, leaving a balance of $1.3 billion. The current figure is seen to have depreciated to eight per cent lower than the 78 per cent payment recorded in the same period last year. The UN Spokesperson Stéphane Dujarric quoted the Secretary in his speech to the budget-setting Fifth Committee of the General Assembly: “Unless more governments pay their annual dues, our work and our reforms are at risk.” He went further to make claims that the financial shortage in October could have reached 600 million dollars had the organization not “contained expenditures globally from the beginning of the year.” Dujarric made know to the UN correspondents in New York that although 129 of the 193 Member States had now paid their regular annual dues, others needed to pay “urgently and in full and this is the only way to avoid a default that could risk disrupting operations globally.” “The Secretary-General asked governments to address the underlying reasons for the crisis and agree on measures to put the United Nations on a sound financial footing,’’ he said. Dujarric assured that the cost-saving measures implored has enabled the UN to fund the General Assembly debate and the high-level meetings in September. In his words: “To date, we have averted major disruptions to operations, but these measures are no longer enough. The Secretariat could face a default on salaries and payments for goods and services by the end of November unless more Member States pay their dues in full. This is a recurrent problem that severely hampers the Secretariat’s ability to fulfill its obligations to the people we serve. We are now driven to prioritize our work on the basis of the availability of cash, thus undermining the implementation of mandates decided by inter-governmental bodies.’’ He said “the UN Secretary expected member states to resolve the structural issues responsible for the annual financial crisis without further delay.” The Secretary-General has however presented a 2.94 billion dollars budget proposal for 2010, same as the estimates for the present year. From the words of the spokesman, he assured that the UN Secretary’s plan represented a “profound reflection on the path ahead and deep commitment to our shared work.” The UN Secretary also said implementation of the budget was no longer being driven by planning, but according to “the availability of cash at hand.” He also added that “this undermines mandate delivery and goes against our efforts to focus less on inputs and more on results.” The United States has however been found missing on the list of Member States that have paid their regular budget assessments as seen on the UN website. President Donald Trump had reportedly alleged earlier this year, that the U.S. was bearing an “unfair burden” of the cost of the UN, and called on the organization to reform its operations.
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