November 10, 2011 - 21:25 AMT
UNESCO suspends programs due to budget deficit

United Nations cultural agency UNESCO has been forced to suspend all its spending programs until yearend after the United States withdrew its funding, its director general said Thursday.

In an address to UNESCO diplomats, Irina Bokova said the agency faces a $65 million (47 million euro) funding shortfall and would have to halt all of its activities, following a row with Washington over Palestinian membership.

Last month, the United States and Israel pulled the plug on their UNESCO funding after members voted to admit Palestine as a full member, a move seen as a step towards its eventual recognition as a UN member state.

US legislation dating from the 1990s requires the US administration, Israel's staunchest ally, to withdraw funding from any UN agency that admits Palestine as a full member before a final peace deal is reached with Israel.

The Palestinians have also asked the UN Security Council for recognition, but the request is still being examined and Washington is all but sure to veto it.

Bokova said she hoped the year-end review would allow savings in UNESCO programs which support cultural, educational and scientific projects around the world -- of around $35 million.

"But this won't be enough to resolve our problem," she warned in a speech to the 36th session of the UNESCO General Conference.

She went on to urge member states to increase their contributions to UNESCO's working fund in order to make up the shortfall caused by the US boycott, france24 reports.