The United Nations is facing a growing financial emergency, with its Secretary-General warning that the organisation risks running out of cash by mid-year. In a letter to member states, the warning links unpaid contributions and rigid financial rules to a rapidly worsening situation.
Warning issued to member states
United Nations Secretary-General Antonio Guterres has warned that the organisation is at risk of “imminent financial collapse”, citing unpaid fees and budgetary rules that require the return of unspent funds.
In a letter dated January 28 and addressed to ambassadors, Guterres said the crisis was intensifying and posed a direct threat to programme delivery and the organisation’s financial stability.
“The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future,” he wrote.
Cash crisis linked to unpaid contributions
The United Nations is facing a cash shortfall as its largest contributor, the United States, has reduced voluntary funding to UN agencies and has not made mandatory payments to the organisation’s regular and peacekeeping budgets.
In the letter, Guterres said that “decisions not to honour assessed contributions that finance a significant share of the approved regular budget have now been formally announced”.
He did not specify which member state or states were involved, and a UN spokesperson was not immediately available for comment.
Call for action or rule changes
Guterres warned that without immediate action, the situation could become critical within months.
“Either all Member States honour their obligations to pay in full and on time, or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” he wrote.
He added that, under current conditions, the organisation could run out of cash by July.
Source: Reuters