Reportedly, the UN (United Nations) is experiencing its “most horrible cash crisis” in almost a decade as about one-third of its member states are not been paid their annual dues, as stated by Secretary-General Antonio Guterres. While addressing the UN’s budget-planning Fifth Committee, Guterres asserted the situation was so distressed that the past month’s General Assembly held in New York was simply possible owing to the emergency spending curbs made previously in the year. Guterres stated, “The organization is dealing with a sharp financial crisis or to be more precise, a serious liquidity crisis. The equation is straightforward: without cash, the budget can’t be implemented properly.”
In a statement published, Stephane Dujarric—UN’s Spokesperson—said that by September, the member states were paid only 70% of the total assessment for the normal budget. That compares to 78% in the same period of 2018. The UN stated that whilst 129 member states had paid their duties for the intergovernmental organization’s 2019 budget in the last week, 64 others were still remaining to pay. It stated there is an outstanding sum of $1.3 Billion for this year. Guterres reported the organization was so cash-broke that it had been pressurized to borrow reserves kept for UN Peacekeeping Operations so as to meet expenses needs in the last few months.
Speaking of the cash crisis, the same severe cash crunch is been experienced in India in the real estate that has left beleaguered banks exposed. A slump in the housing property market across the country is making many builders struggling to pay off loans to shadow banks, which are the housing finance companies outside the standard banking sector that sums up for more than half of the loans to builders. As per to Fitch Rating’s Indian division, with around $10 Billion of builder loans are scheduled to come for repayment in the first half of 2020, the fallout can spread to regular banks that have invested in their bonds or lend money to the shadow lenders.