UNIDO Board defers decision on financial crisis.

UNIDO Board defers decision on financial crisis

A decision on how to cover a $33million deficit in the budget of the United Nations Industrial Development Organization (UNIDO), will be taken at the June 1987 session of the Organization's Industrial Development Board (IDB), it was decided at the March 1987 session of the UNIDO board.

UNIDO Member States also urgedall States that had not paid in full their assessed contributions, and advances to a Working Capital fund for 1986 and 1987, to do so without delay. It recommended to its General Conference, scheduled to meet in November in Bangkok, that measures including supplementary estimates, be taken to cover net exchange-rate losses for the biennium.

A special account would be establishedto allow Member States that are in a position to do so to make voluntary advance payments to cover exchange-rate losses for the fiscal period 1986-1987 until the General Conference makes a final decision on the issue.

UNIDO Director-GeneralDomingo L. Siazon, Jr. was requested to present an updated report on the budget and cash situation in June.

The Board is also to consider thena report of an informal open-ended working group of member countries, established by another policy-making organ, the Programme and Budget Committee (PBC), in March. The working group is chaired by Lodewijk van Gorkom, of the Netherlands.

The Board also agreed by consensusthat in June it would consider recommending adoption of a split-currency system to assess UNIDO Member States for their contributions. Members would be required to assume most of the currency risk by paying part of their contributions to the regular budget in Austrian schillings and part in United States dollars. The proportion would be decided each biennium by the General Conference.

The Board in June will also receivea programme submitted by the Director-General for repaying by 1988 a $16 million loan from the United Nations.