The United Nations is facing a financial crisis and could exhaust its funds by the end of August, risking a cash shortfall just before its annual high-level meeting in September. Assistant Secretary-General Chandramouli Ramanathan bluntly stated that the organization is in danger of running out of cash soon. Despite this, Ramanathan, the UN’s finance chief, expressed hope of managing the situation through financial maneuvers to ensure the high-level meeting proceeds as planned.
The UN’s financial stability beyond August hinges on timely contributions, primarily from major funders like the US and China. The organization’s financial predicament is exacerbated by delayed payments from China and the US, its largest budget contributors. China owes around $430 million for the current year, while the US has outstanding dues of approximately $2 billion from previous years. The US, under President Donald Trump, has been critical of the UN and has withheld contributions for various reasons, leading to financial strains.
To address the liquidity crisis, the General Assembly has temporarily suspended a rule that mandated the UN to return unspent funds to members, even if the shortfall was due to delayed payments. Secretary-General Antonio Guterres welcomed this move, highlighting the absurdity of returning funds that were never received in the first place. The suspension of this rule is seen as a crucial step in alleviating the UN’s financial challenges and ensuring its operational continuity.
