For the first time in its history, the UN Relief and Works Agency for Palestine Refugees does not have enough funds to cover its expenses until the end of the year, commissioner general Philippe Lazzarini said on Thursday.
“We are on the edge of the cliff but I still believe we can avoid to fall if the solidarity of the international community is expressed now,” Mr Lazzarini said.
It was the latest of a series of warnings he has issued about the funding crisis facing the agency, which serves about 5.7 million Palestinian refugees.
“For the first time in the history of agency, we have no cash available any more to cover our spending between now and the end of the year,” Mr Lazzarini said in Gaza City on Thursday.
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He said the UNRWA would continue to provide all of its services for now and would pay its staff salaries for November, although he could not say when, but the agency is struggling.
Last week, Mr Lazzarini warned of impending “disaster” in the Gaza Strip and insecurity in Lebanon as the UNRWA confronted its "worst financial crisis".
"It is in the interest of no one to see schools suddenly suspended, health services being suspended, at a time when people are hit by the pandemic," he told AFP.
On Thursday, Mr Lazzarini repeated his warning about the closure of health services.
“The health system is on its knees, is about to collapse at the time the pandemic is rising, rising, rising,” he said.
This month Mr Lazzarini said that the UNRWA faced a $70 million funding shortfall, jeopardising its ability to pay staff their November and December salaries.
The shortfall affects 28,000 staffers, mostly refugees, across the Israeli-occupied West Bank, East Jerusalem, the Gaza Strip, Lebanon and Jordan.
After local authorities, the UNRWA is the main employer in the Gaza Strip, which is controlled by militant group Hamas and is under blockade by Israel.
"This population is entirely dependent on international assistance," Mr Lazzarini said.
He said the suspension of UNRWA programmes could have devastating economic and security effects.
Mr Lazzarini expressed fear that "the same could very easily happen with the Palestinian refugees in Lebanon".
He was appointed to lead the agency in March, after a predecessor was forced to resign late last year amid accusations of mismanagement that led key donors to stop funding.
The developments added to the agency's financial woes after US President Donald Trump ended US contributions in 2018.
Washington had until then been providing the agency with more than $300m a year.
About 40 countries initially helped fill the gap, but contributions have since diminished and the coronavirus pandemic has also taken a financial toll on donor countries.