AG/RES. 1593 (XXVIII-O/98)

QUOTA PAYMENTS

(Resolution adopted at the third plenary session, held on June 2, 1998)

THE GENERAL ASSEMBLY,

HAVING SEEN the report of the Permanent Council on quota payments (AG/doc.3718/98);

NOTING:

That the current program-budget of the Organization is financed almost exclusively through the payment of quotas corresponding to each member state;

That resolution CP/RES. 541 (816/90) indicates that each member state must make its quota payment to the Regular Fund by April 30 of each year so as not to be considered in arrears for that calendar year; and

That the effective delivery of the Organization's programs is enhanced and facilitated by the full and timely payment of quotas;

RECOGNIZING the need to avoid excessive arrears which render difficult or impair the fulfillment of mandates entrusted to the Organization;

RECALLING:

That under the Statutes of the Special Multilateral Fund of the Inter-American Council for Integral Development (FEMCIDI), member states may receive benefits only if they have made their contributions to that Fund; and

That by resolution CP/RES. 541 (816/90), the Permanent Council adopted certain measures, together with transitory provisions which expired in December 1990, to improve and regularize the Organization's cash flow, by encouraging member states in arrears to become current in their payments;

CONSIDERING:

That by resolution AG/RES. 1529 (XXVII-O/97), the General Assembly instructed the Permanent Council to study, through the Committee on Administrative and Budgetary Affairs (CAAP), "the merits of including additional provisions for the establishment of a comprehensive system of measures designed to encourage member states to pay their Regular Fund quotas to the Organization in full and on time and to prepare a report, including specific recommendations, for presentation to the General Assembly at its twenty-eighth regular session"; and That based on its examination of matters entrusted to it under that resolution, the Permanent Council has recommended that the General Assembly adopt certain measures,

RESOLVES:

1. To instruct the Permanent Council to reestablish the transitory measures outlined in resolution CP/RES. 541 (816/90) in order to encourage further the timely and predictable payment of Regular Fund quotas and arrears as follows:

a. Member states in arrears on payments of Regular Fund quotas for financial years prior to 1998 shall be considered as current in their payments provided that they have agreed by November 30, 1998, with the Secretary General on a schedule of payments for settling the amount due and are in compliance with such schedule.

b. When working out that schedule of payments with each member state, the Secretary General shall do so on the basis of effective annual payments within a maximum period of five years; however, for those countries that are less than five years in arrears, the period shall be no greater than the number of years they are in arrears.

c. The Secretary General shall also report on the conclusion of such agreements to the Permanent Council as soon as possible, but no later than December 15, 1998.

2. To request the Secretary General to continue and intensify his efforts to work out innovative solutions with individual member states that have difficulties in meeting their quota obligations.

3. To instruct the General Secretariat, in executing the program-budget, to take into consideration cash flow, based on notification of arrears and on current year payment schedules.

4. To instruct the Permanent Council, through its Committee on Administrative and Budgetary Affairs, to continue studying the merits of including provisions for the establishment of a comprehensive system of measures designed to encourage member states to pay their Regular Fund quotas to the Organization in full and on time, and to prepare a report, including specific recommendations, for presentation to the General Assembly at its twenty-ninth regular session.