UN Chief Warns of ‘Imminent Financial Collapse’
The United Nations is confronting a severe financial emergency that could push the organization toward what its top official described as an “imminent financial collapse,” according to a letter sent to member states late last month.
In the message dated Jan. 28, United Nations Secretary-General Antonio Guterres warned that the organization’s financial position is rapidly worsening due to a combination of unpaid membership dues and restrictive budget rules. “The crisis is deepening, threatening program delivery and risking financial collapse. And the situation will deteriorate further in the near future,” Guterres wrote.
At the heart of the problem are mounting arrears from member states, which have left the U.N. struggling to meet its core financial obligations. The shortfall has affected both the regular budget and peacekeeping operations, creating cash-flow pressures that have become increasingly difficult to manage.
Guterres also pointed to a long-standing budget regulation that requires the organization to return unspent funds to member states, even during periods of acute financial stress. He described this rule as a structural flaw that exacerbates instability and limits the U.N.’s ability to plan responsibly.
The financial strain has been compounded by reductions in voluntary contributions from some major donors and delays in mandatory payments, further tightening available resources. As a result, the organization has been forced to consider cost-cutting measures and internal adjustments to keep operations running.
In his letter, Guterres cautioned that without immediate action, the United Nations could face a liquidity crisis within months. He urged member states either to pay their assessed contributions in full and on time or to agree to a fundamental overhaul of the organization’s financial rules to prevent collapse.
The growing cash crunch has raised concerns about the U.N.’s capacity to carry out essential missions, including peacekeeping, humanitarian aid, and development programs worldwide. Officials warn that continued delays in funding could lead to reductions in services and undermine the organization’s global role.
Despite ongoing efforts to streamline operations and rein in expenses, Guterres made clear that internal reforms alone will not be sufficient. Without decisive action from member states, he warned, the financial outlook for the United Nations will continue to deteriorate.
{Matzav.com}