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UN struggling with $230mn deficit, may run out of money by October end: Antonio Guterres

The United Nations (UN) is running out of money for operations by the end of October said Secretary-General of the global body Antonio Guterres, adding it may run out of money by the end of October.

India TV News Desk India TV News Desk
New Delhi Published on: October 08, 2019 11:48 IST
UN struggling with $230mn deficit, may run out of money by

UN struggling with $230mn deficit, may run out of money by October end: Antonio Guterres

The United Nations (UN) is running out of money for operations by the end of October said Secretary-General of the global body Antonio Guterres, adding it may run out of money by the end of October.

As of now, the UN is struggling with a deficit of $230 million, reported news agency AFP. 

In a letter addressed to 37,000 employees at the UN Secretariat, reviewed by AFP, Guterres said unspecified "additional stop-gap measures" would be needed to pay salaries and entitlements to employees.

The UN Secretary-General Guterres said member states of the international body have only paid 70 per cent of the total amount needed for regular budget operations in 2019.

"Member States have paid only 70 per cent of the total amount needed for our regular budget operations in 2019. This translates into a cash shortage of $230 million at the end of September. We run the risk of depleting our backup liquidity reserves by the end of the month," he wrote.

In a bid to cost cutting, Guterres also proposed postponing conferences and meetings and reducing services, while also restricting official travel to only essential activities and taking measures to save energy.

Guterres had asked member states earlier this year to increase contributions to the world body citing cash flow problems but the proposal was rejected, news agency APF quoted a UN official as saying.

"The ultimate responsibility for our financial health lies with Member States," Guterres said.

Not including what it pays for peacekeeping operations, the UN's operating budget for 2018-2019 is close to $5.4 billion, with the United States contributing 22 per cent.

(With inputs from AFP)

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