Stalled escalators, the heating turned down, the diplomats’ pub closing early at 5 pm: currently, the UN budget crunch, among the worst in a decade, is making itself felt at a string of steps announced by the entire body on Friday.
“We don’t have any choice,” explained Catherine Pollard, a leading official at the UN’s administration department. The main priority today is making sure another paycheck for the UN’s 37,000 workers.
Guterres is known as the crunch that the”worst money crisis facing the United Nations in almost a decade”
He cautioned the company”runs the danger of depleting its liquidity reservations by the end of the month and defaulting on payments to sellers and staff.”
The UN declared a $1.4 billion shortfall in its operating budget this year, attributing the financing gap on approximately 60 countries that had been paying their dues.
‘The Bad cop it’
Contributions to pay peacekeeping operations — that come from different pot — also have suffered from tardy payment. In 2019, France such as owes an additional $103 million.
As a result, the UN is deferring payments to countries that have contributed troops, with a number of outstanding debts, for example, Bangladesh, reaching substantial sums.
“When the wealthy refuse to cover, it is the poor that it,” said one UN official, asking not to be called.
The UN has ever confronted budget battles, but nowadays they’re getting larger, surfacing earlier and lasting for more, ” the UN said.
The UN budget conducts in line with the calendar year, although the US fiscal year is from October 1 to September 30, and also the UN expects Congress will free up the capital at the close of the year.
The UN budgetary rules don’t include any interest or penalty on overdue payments.