
UN Secretary-Normal Antonio Guterres has warned of an “imminent financial collapse” on account of unpaid member fees and a funds rule requiring unspent funds to be returned.
| Picture Credit score:
Eduardo Munoz/Reuters
U.N.
Secretary-Normal Antonio Guterres is sounding the alarm on U.N.
funds, warning that the world physique is in danger of “imminent
financial collapse” on account of unpaid fees and a funds rule that
forces it to return unspent funds.
Guterres has repeatedly spoken concerning the U.N.’s worsening
liquidity disaster however this was his starkest warning but, and it
got here as america, its major contributor – and debtor –
is retreating from multilateralism on quite a few fronts.
Listed here are some questions and solutions about U.N. funds:
HOW MUCH IS OWED TO THE UNITED NATIONS AND BY WHOM?
In a letter to member states final week, Guterres mentioned there
was a report $1.57 billion in excellent dues for the U.N.’s
common funds, with out naming the nations that owed them.
U.N. officers say greater than 95 % of what’s owed to
the common U.N. funds is owed by america – $2.19
billion by the beginning of February. The U.S. additionally owes one other
$2.4 billion for present and previous peace-keeping missions and
$43.6 million for U.N. tribunals.
On December 30, the U.N. Normal Meeting permitted $3.45
billion for the common U.N. funds for 2026, following weeks of
negotiations. This covers prices of working U.N. places of work round
the world, together with the headquarters in New York, employees
salaries, conferences and improvement and human rights work.
U.N. officers say the U.S. didn’t pay into the common
funds final 12 months and owes $827 million for that, in addition to $767
million for 2026. Subsequent in line have been Venezuela and Mexico, owing
$38 million and $20 million respectively.
Contributions depend upon economic system measurement. The U.S. accounts for
22% of the common funds, adopted by China with 20%. Fees are
formally due by Feb. 8 and thus far 41 states have paid for
2026, a U.N. doc confirmed.
WHAT IS GUTERRES ASKING MEMBER STATES TO DO?
With out naming america, U.N. spokesperson Stephane
Dujarric mentioned this week the U.N’s “cash-flow drawback” might be
solved “if member states, who’ve an obligation to pay, pay.”
The crunch comes at a time when U.S. President Donald Trump
has launched a Board of Peace with himself as lifetime chair,
which some worry might undermine the United Nations, a physique with
193 member states fashioned within the ashes of World Battle Two that
works to keep up worldwide peace and safety.
Underneath Trump, in addition to refusing to make necessary funds
to the U.N.’s common and peacekeeping budgets, the U.S. has
slashed voluntary funding to U.N. businesses with their very own
budgets, and moved to exit U.N. organizations together with the
World Well being Group. In December, the U.N. appealed for a
2026 help funds solely half the dimensions of what it had hoped for in
2025, acknowledging a plunge in donor funding at a time when
humanitarian wants have by no means been higher.
Guterres launched a reform job pressure final 12 months, UN80,
searching for to chop prices and enhance effectivity. The permitted 2026
common funds is roughly $200 million larger than he proposed,
however about 7 per cent decrease than the permitted 2025 funds.
Guterres warned in his letter that the U.N. might run out of
money by July and cited a “Kafkaesque” requirement for it to
credit score again tons of of tens of millions of {dollars} in unspent dues to
states every year even when it by no means acquired the cash. U.N.
officers hope to overtake this “weird” rule, which Guterres
has referred to as “a race to chapter.”
WHAT HAS THE TRUMP ADMINISTRATION SAID?
Chatting with Politico on Sunday, Trump solid himself because the
savior of the U.N. however declined to say if the U.S. would pay up.
In keeping with Politico, Trump mentioned he was unaware the U.S.
was behind in its commitments however was positive he might “resolve the
drawback very simply” and get different nations to pay — if solely
the U.N. would ask.
The White Home and State Division didn’t reply when
requested if the U.S. pays, or if Trump meant that different
nations ought to put up the cash as a substitute.
A senior State Division official did although say that “the
U.N. must get again to fundamentals” and accused it of losing
cash.
“We now have no real interest in persevering with to spend American tax
{dollars} on such waste, fraud and abuse,” the official mentioned.
“The U.N. continues to pay its employees way over for
comparable U.S. authorities positions, present unacceptable
advantages and pensions, and enhance the quantity of high-level
bureaucrats in New York – up over 30% – within the final two years
alone. The U.N. additionally spent $340 million simply on conferences and
conferences final 12 months.”
In keeping with a draft U.N. funds doc seen by Reuters in
September, U.N. cost-savings plans for subsequent 12 months envisaged far
smaller cuts to senior employees than to decrease ranks.
It confirmed simply two of 58 division head posts within the layer
of under-secretaries-general beneath Guterres, or 3%, would go,
in comparison with round 19% throughout the board and as much as 28% for one
lower-ranking class, in accordance with Reuters calculations.
A U.N. official mentioned Guterres aimed to ship on reform
whereas limiting the influence of cutbacks. If the U.S. didn’t pay,
“on the finish of the day, conferences cannot be organized, work’s not
carried out, employees isn’t being paid,” the official mentioned.
“In contrast to a authorities, we won’t borrow cash and we won’t
print cash.”
Revealed on February 4, 2026
Source link
#warns #imminent #financial #collapse #unpaid #member #fees

