CP/RES. 868 (1431/04)

INTERNAL ARRANGEMENT TO TEMPORARILY RESOLVE THE LIQUIDITY SITUATION OF THE REGULAR FUND

THE PERMANENT COUNCIL OF THE ORGANIZATION OF AMERICAN STATES,

HAVING SEEN the communication that the Secretary General sent to the Chair of the Permanent Council on June 24, 2004 (CP/INF.5024/04), regarding the difficult situation faced by the General Secretariat in its execution of the 2004 Program Budget, as a result of the delays of quota payments of some member states;

CONSIDERING:

The presentation of the General Secretariat to the Permanent Council, concerning possible alternative sources of financing to temporarily alleviate the situation of lack of cash and thus avoid paralyzing the operations of the OAS;

The information provided by the Executive Secretary of the Inter-American Agency for Cooperation and Development (IACD);

That the General Secretariat has indicated that it requires approximately $5 million dollars for the month of July and an additional $12 million for the subsequent two months, for a total of $17 million in financing to cover the essential operations of the Organization for three months;

That the General Secretariat has cash balances in the supplementary appropriations approved by CP/RES. 831 (1342/02) that, as of June 25, 2004, amounted to $16.7 million, of which more than $10 million are not yet obligated;

That given the existing situation, it is necessary and viable to access these funds as a provisional recourse;

That given these special circumstances the Permanent Council can authorize FEMCIDI, under Article 91(b) of the Charter, to make an exception to Article 79 (e) of the General Standards, to make an advance payment on the Contribution for Technical Supervision and Administrative Support to the Regular Fund; and

TAKING INTO ACCOUNT that as the member states make their quota payments to the Regular Fund, the General Secretariat will reimburse these amounts to the pertinent accounts,

RESOLVES:

With the objective of temporarily alleviating the immediate liquidity situation faced by the General Secretariat in executing the budget of the Regular Fund:

1. To reiterate to Member states the importance of prompt payment of their quotas to the Regular Fund; and to review the Organization’s liquidity situation no later than the 23rd of July 2004, in the light of additional quota payments which may be received, in order to take such additional measures as may be required.

2. To authorize the General Secretariat to draw upon such funds as needed up to $4.5 million from the supplementary appropriations approved by CP/RES. 831 as follows: $2.6 million from the Capital Building Fund; $.8 million from the Simon Bolivar Room Renovation; $1.1 million from the Summit of the Americas Mandates.

3. To instruct the General Secretariat to reimburse any amounts used under this resolution, as funds become available from the payment of quotas by member states to the Regular Fund, and to report on a monthly basis to the Permanent Council on such reimbursement as well as on quota payments.

4. To instruct the General Secretariat to present a fortnightly report to the Permanent Council on the liquidity situation of the General Secretariat until such time as the situation is stabilized.