Mr. Chairman,

I have the honor to speak on behalf of the Group of 77 and China on the agenda item 120: Improving the Financial Situation of the United Nations.

2. We thank Ms. Angela Kane, Under-Secretary-General for Management, for her presentation on the financial situation of the Organization.

3. The Group of 77 and China reaffirms its position that full and on time payments by Member States of their assessed contributions to the budgets of the United Nations is a Charter obligation. It is a collective responsibility of all Member States to ensure their sincere adherence to this obligation by ensuring the full and on time payment of all assessed contributions as well as the outstanding contributions.  The Under-Secretary-General for Management has stated clearly that while 2008 had seen a financial progress, a negative trend had emerged in 2009 with growing number of States not full meeting their financial obligations, an evolving situation whose outcome would depend largely on actions taken by Member States. In this context, the Group expresses its rejection to the unilateral coercive measures that create obstacles to members of the Group when it comes to the payments of their contributions to the budgets of the Organization.

4. The Group notes that the updated information up-to the 7th of May 2009 indicates that the regular budget is facing an outstanding amount of $1.5 billion a situation that could expose the Organization to the risk of a cash shortage in the coming months and hence hinders its ability to meet its legislative mandates. This is mainly due to the large outstanding payment by one Member State. The Group would like to reiterate that this systemic problem needs to be resolved permanently.

5. As regards the budgets of the Peace Keeping Operations, the Group expresses its concern over the fact that over two thirds of the $2.9 billion outstanding at the end of the 2008 was owed by two Member States (Japan and the United States). The Group hopes that those two Member States as well as other Member States will spare no efforts to pay their arrears in order to allow the Peace Keeping Missions to implement their important mandates particularly those mandates related to peace and security. The Group also notes with concern that about 1 billion US dollars are owed to Troop Contributing Countries (TCCs), which is mainly due to lack of cash surplus in many missions as well as the slow rate of reimbursement by the Secretariat.   

6. The Group notes that cross-borrowing from closed peace keeping operations is still an ongoing practice, which is due to the late or non payment of some Member States to their contributions. The Group, however, wishes to reiterate its opposition to the cross-borrowing among active peace keeping operations, and emphasizes that cash surpluses in any active peace keeping mission should preferably be utilized for the outstanding liabilities such as troops and equipments payments, or to be returned to individual Member States, in accordance with the relevant General Assembly resolutions.

Mr. Chairman,

7. The Group of 77 and China remains committed to efforts to strengthening the United Nations and enabling it to implement its mandates more effectively and using its resources more efficiently. We furthermore committed to meeting our financial obligations to the Organization in full, on time and without conditions. While sympathizing with Member States that are unable to meet their obligations due to social and economic conditions beyond their control, we urge all Member States, in particular the main contributor, to re-commit themselves to meeting their Charter obligation so that the Organization is able to meet its objectives and operate in an efficient manner.

I thank you, Mr. Chairman.