General Assembly's financial rule changes seen as stabilizing peacekeeping budgets

U.N. briefers welcomed a General Assembly decision to reform financial rules that previously required returning unspent funds in ways the U.N. said had risked organizational stability. The change, adopted on a four-year trial basis, introduces a methodology that returns unspent funds to member states only when backed by cash, the briefing said.

The briefing said that without the change, the U.N. would have been forced to return $224 million immediately and nearly $900 million by next June, jeopardizing peacekeeping operations and prompting contingency plans during the recent budget cycle. "The change, together with payments in full and on time by member states, will allow peacekeeping missions to continue implementing their mandates," the briefing said.

Under-Secretary-General for Peace Operations Jean-Pierre Lacroix was quoted in the briefing as thanking member states for their efforts and saying the U.N. will continue working to improve performance and efficiency so missions can better protect civilians, monitor ceasefires and advance solutions for lasting peace.

The financial rule change is framed in the briefing as an operational measure to improve predictability for regular peacekeeping budgets; it was characterized as a trial of the new methodology for four years. The briefing said the change will benefit the incoming administration and contribute to the U.N.'s financial stability over a number of years.

Next step: the rule change will be implemented on a trial basis; briefers said continued timely payments by member states will be necessary to realize its intended stabilizing effects on peacekeeping budgets.