2003 finances generally positive despite 'precarious' budget, UN official says

While the United Nations budget situation remains precarious, the prognosis for the world body's financial health was generally positive as more Member States are paying their debts and assessments on time and the cash flow for peacekeeping operations expected to settle at a "comfortable level," a senior UN manager said today.

"We have a better news situation," the Under-Secretary-General for Management Catherine Bertini told a press briefing at UN Headquarters in New York. Summing up figures for 2003, she said that more Member States were paying their debts in the year in which they were owed. Meanwhile, peacekeeping cash should remain at a comfortable level - with 2003 payments and credits exceeding new assessments - although shortages in some UN missions existed and debt to Member States was expected to increase.

Regarding the indicators on unpaid assessments as of 2003, Ms. Bertini said the regular budget position had "slipped somewhat" with unpaid assessed contributions increasing despite more nations paying. The already precarious situation of the International Criminal Tribunals for Rwanda and the former Yugoslavia had gotten much worse, she noted, saying a handful of Member States accounted for over 86 per cent of the shortfall.

While last year was first that the Organization had not had to borrow from the regular budget, the projection for the current year was that it might have to, Ms. Bertini said. Last year also saw a turnaround in the number of Member States paying regular budget assessments in full by the end of the year, with 131 countries having done so, breaking a negative trend since the number peaked at 141 in 2000.

"A strong financial base is a prerequisite for the United Nations ability to carry out the many important tasks entrusted to it by Member States," Ms. Bertini said, adding that improving the Organization's financial situation remained a high priority for Secretary-General Kofi Annan.