UN FINANCES FOR 1998 'BLEAK', SAYS GENERAL ASSEMBLY PRESIDENT IN CLOSING REMARKS TO FINANCIAL WORKING GROUP
Press Release
GA/SM/16
UN FINANCES FOR 1998 'BLEAK', SAYS GENERAL ASSEMBLY PRESIDENT IN CLOSING REMARKS TO FINANCIAL WORKING GROUP
19971126 Following is the concluding statement of General Assembly President Hennadiy Udovenko (Ukraine) to the high-level working group on the financial situation of the United Nations, on 26 November:Let me make some concluding remarks. This meeting addressed the serious financial situation the Organization faces because of late payment of contributions and non-payment of arrears by some Member States. The financial outlook for the United Nations for 1998 is bleak, and for 1999, at best, insecure. The General Assembly is seriously concerned about this development and the aggravated financial situation. In the past three years, in spite of the utmost budgetary constraints and reductions, the Organization had to resort to the financially imprudent practice of borrowing from peacekeeping funds to pay the Organization's operating costs under the regular budget, thus, considerably delaying cost reimbursements to troop- and equipment-providing countries for essential peacekeeping operations. This practice means that the Organization is accumulating debts owed to these countries, including many developing countries. This amount is estimated at $800 million by the end of this year. Thus, many Member States who not only pay their contributions in full and on time, but also provide essential services to the Organization, subsidize the non-payment of others, in particular, of the major debtor to the United Nations budget. This situation has to be rectified as soon as possible. Member States must, therefore, be reminded about their legal obligation to fully pay their contributions. I appeal to the Member States to swiftly pay their outstanding, as well as current, contributions. The United Nations has started to implement a far-reaching reform agenda. Its operations must not be jeopardized and the energy and time of Member States and the Secretariat must not be wasted by endless efforts to secure its financial survival. The high-level working group will keep the extraordinarily difficult financial situation of the Organization under further review, including, in particular, the issue of borrowing from peacekeeping funds for regular budget purposes, as well as the exploration of further options for ensuring prompt payment by all Member States of their assessed contributions. I would like to thank all ambassadors and delegations for their constructive participation in the meeting of this working group.
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