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UN Risks Imminent Financial Collapse, Guterres Warns

share-iconPublished: Friday, January 30 share-iconUpdated: Friday, January 30 comment-icon1 hour ago
UN Risks Imminent Financial Collapse, Guterres Warns

Credited from: ALJAZEERA

  • UN faces an "imminent financial collapse" due to unpaid dues from member states.
  • Guterres urges all 193 member states to honor their financial obligations.
  • The US, as the largest contributor, has significantly cut funding, impacting the UN's budget.
  • A budgetary rule forces the UN to return unspent funds, exacerbating financial strain.
  • As of now, only 36 out of 193 member states have fully paid their 2026 contributions.

United Nations Secretary-General Antonio Guterres has issued a stark warning that the organization is facing an "imminent financial collapse" due to unpaid fees from member states. He stated that the situation is "deepening," putting program delivery at risk, and cash could run out by July, highlighting the urgency for compliance from all member countries, according to Reuters and BBC.

Guterres pointed to the actions of the United States, the UN's largest contributor, which has slashed funding and delayed payments, as a major factor contributing to the financial crisis facing the UN. He emphasized that decisions not to honor assessed contributions have been formally announced and criticized the current funding mechanism that leaves the UN exposed to structural financial risks, according to Le Monde and Al Jazeera.

In his letter, Guterres called for either all member states to fulfill their financial commitments or for a fundamental overhaul of the UN's financial rules to prevent an imminent collapse. The UN is faced with a budgetary rule that requires it to return unspent contributions, which creates a "Kafkaesque cycle" wherein the organization is forced to give back money it does not have, according to Reuters, BBC, and Le Monde.

The financial difficulties experienced by the UN have been exacerbated by the record outstanding dues of $1.57 billion, with time running out for member states to respond to Guterres’s urgent appeals for payment, as he noted that only 36 out of 193 member states had fully paid their contributions for 2026, according to BBC and Al Jazeera.


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