UNITED NATIONS, June 29: A major financial crisis was averted at the United Nations as the UN member states lifted a $950 million spending cap on Wednesday which was forced by United States which threatened the world body that it would halt its yearly contribution unless the management reforms it sought were approved.
Saying that not enough progress had yet been made in the reform of the organisation, the United States, Japan and Australia dissociated themselves from the consensus decision to lift the cap, which stems from a December decision to adopt a budget for the 2006-2007 biennium but to limit spending authorisation to six months and $950 million.
