OEA/Ser.G
CP/RES. 868 (1432/04)
2 July 2004
Original: English
CP/RES. 868 (1432/04)
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.
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