UN REPORTS MIXED FINANCIAL SITUATION

UNCLAS USUN NEW YORK 000993 SIPDIS DEPARTMENT FOR IO E.O. 12958: N/A TAGS: PREL AORC SUBJECT: UN REPORTS MIXED FINANCIAL SITUATION ¶1. On October 28, Under Secretary-General Angela Kane outlined the UN's financial situation the UN General Assembly (UNGA) Fifth Committee (Administrative and Budgetary). UN financial indicators show a mixed picture for 2008. The United States owes USD 711 million towards the regular budget, USD 885 million for peacekeeping operations (PKOs), USD 45 million for tribunals, and an unspecified amount for the Capital Master Plan (CMP). All figures to follow are in millions of USD and were current as of October 24. ¶2. The financial position of the regular budget reflects the current deficit with a projected worsening deficit in the last quarter of this year. Borrowing will be required from reserve accounts with projected increasing deficit in the next two months. Unpaid peacekeeping assessments increased over the last 10 months, but the level is below that of one year ago. The amount outstanding is 2,900 as compared to 3,500 a year ago. Significant levels remain outstanding for PKOs. There is improvement in some indicators. There has been a decrease in UN debt to Member States supporting PKOs, and steady progress in debt reduction. In order to maintain the UN's financial health, Kane said it remains critical for Member States to meet their financial obligations in full and on time. ¶3. Kane praised the 31 Member States with all assessments paid in full: Australia, Austria, Azerbaijan, Brazil, Bulgaria, Burundi, Canada, the Czech Republic, Denmark, Finland, Georgia, Germany, Guatemala, Ireland, Italy, Liechtenstein, Mexico, Moldova, Monaco, New Zealand, Niger, Norway, the Philippines, Russia, Samoa, Singapore, Slovenia, South Africa, Sweden, Thailand and the UK. ¶4. Kane's briefing will be disseminated as a UN document shortly. Member States will be given an opportunity to respond to the presentation on November 6. Khalilzad