| ||||||||||||
Latest News on the Financial Crisis: 9 July 1996 Latest News: 9 July 1996
US Makes Partial Payment Towards 1995 UN Budget
On 8 July, the Clinton Administration paid $61 million towards its $683 million debt to the UN regular budget. The funds were released under the terms of a certification process, required under the Congressional appropriation. The Secretary of State certified to Congress the independence and effectiveness of the UN Office of Internal Oversight, clearing the way for release of the funds. The step had been expected in Washington for several days.
Of the $315 million US assessment for 1995, the United States still owes $98 million. Additionally, the US owes $197 million from 1994 and before. And it owes its entire assessment for 1996, totalling $321 million. The total outstanding for the regular budget comes to $622 million after the new payment. The United States also owes a very large sum on its peacekeeping account -- $889 million as of June 30.
Before the payment, the United States owed 75% of all outstanding dues to the UN regular budget. After the payment, the US will owe approximately 69% of outstanding dues.
William Grant, Advisor at the US Mission to the UN in New York, explained to GPF that the remaining sums due on the 1995 budget will be paid out in two $40 million tranches, upon further certification by the Secretary of State that the UN has stayed within its current budget. Finally, a $7 million sum will be paid out under a rubric known as "reprogramming." Grant acknowledged that no date has been set for the certification. He further pointed out that the United States is planning to pay $304 million, not $315 million as billed by the UN. The difference is due to various Congressionally-mandated "withholdings," which have been in effect for a number of years. Under these mandates, the United States government does not pay for certain UN programs it does not agree with, recognizing only lesser, pro-rated dues. Withholdings for the UN 1995 budget amount to $11 million.
When asked about the Administration's plan to pay off US arrears to the UN over five years, Grant explained that the US government proposes to pay off $56 million, rather than the $203 million the UN says is due. The difference is accounted for by $147 million in accumulated US withholdings. The European Union and many other countries have pressed the United States to pay up its full arrears -- promptly and without conditions. But sources in Washington are sceptical that Congress will even agree to pay off the $56 million figure. It also seems unlikely that the Clinton Administration will give this item priority, even though the sums are due as a treaty obligation, are very long overdue and are a source of embarrassment in international gatherings.
With such large sums still outstanding, many observers believe the Clinton administration may be moving deliberately slowly on the payment process, to keep the heat on the hard-pressed UN. But by paying a large chunk of the April appropriations total on 8 July, the administration has at least moved a small distance in the right direction.
FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C ß 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.