UNITED NATIONS (Pakistan Point News / Sputnik - 03rd April, 2020) UN Secretary-General Antonio Guterres informed member states about looming financial crisis that the world's body might soon confront as it continues to help fight the novel coronavirus (COVID-19) pandemic, UN spokesman Stephane Dujarric said in a press briefing on Thursday.
"In a letter that was sent to member states yesterday, the Secretary-General said that while we face the enormous challenges posed by COVID-19, UN operations are also under increased financial pressure due to continued financial constraints," Dujarric said. "We are at the risk of confronting a cash deficit, even earlier than in previous years unless we slow down our expenses."
Dujarric said in 2019, the United Nations did not receive $711 million of annual budget dues from member states - the highest level of arrears in 10 years and a 34 percent increase compared to 2018.
This deficit is now perplexed by a "sharp decline" in countries' payments towards the UN budget, which currently stands at 42 percent compared to 50 percent in earlier years.
Guterres directed UN managers to temporarily halt all hiring for regular budget operations in order to reduce expenses and pay salaries to employees and vendors, Dujarric said.
He added that the UN chief also renewed his call on member states to pay their regular budget dues for 2020 as soon as possible.
In October 2019, Guterres announced that the world's body was facing a severe budget crisis due to many member states' failure to pay their regular annual dues.
