By Greg Barrow BBC News at the United Nations

New York Mayor Michael Bloomberg has announced new rules designed to prevent foreign diplomats from escaping parking fines.

The city takes pride in hosting the United Nations headquarters, but officials have been less than pleased with the behaviour of foreign diplomats who have ignored the laws and refused to pay fines.

Using diplomatic protection, they have now accumulated more than $20 million in unpaid parking fees, no small amount of money for a city in the midst of a budget crisis.

It took the intervention of the US State Department earlier this month to prevent Mayor Bloomberg from ordering the confiscation of diplomatic vehicles belonging to missions that had not paid fines.

Part payment

Under the new rules drawn up by Mr Bloomberg and the State Department, foreign missions will be offered an incentive to cancel their parking fine debts by paying part, but not all, of what they owe by the end of the year.

There will also be a significant 75% reduction in the number of diplomatic licence plates issued to foreign missions.

Any new offenders will have all of their privileges withdrawn.

Mr Bloomberg's office has described it as an historic agreement designed to make diplomats play by the rules in New York City.