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