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UN Chief Warns of Imminent Financial Collapse

UN Chief Warns of Imminent Financial Collapse

On Friday, UN Secretary-General Antonio Guterres raised the alarm, warning member states of an "imminent financial collapse" of the organization if some continue to delay payments.

The institution has "already overcome" financially challenging periods, but Guterres believes that the current situation is fundamentally different, as noted in a letter to member countries reviewed by AFP.

The issue stems from the "decisions" of unspecified countries to "not fulfill mandatory contributions that finance a significant portion of the approved regular budget."

Opposed to the multilateralism championed by the United Nations, the United States, in particular, has recently refused or delayed certain mandatory payments and reduced funding to specific UN agencies.

In early January, Donald Trump ordered the withdrawal of the U.S. from 66 international organizations "that no longer serve American interests," including 31 related to the UN.

Additionally, the American president launched a "Peace Council," initially intended to implement his plan for Gaza, but which, according to critics, aims to become a rival organization to the UN.

Although over 150 member states (out of 193) have paid their dues, the UN ended 2025 with $1.6 billion in unpaid contributions, more than double that of 2024.

The institution is also facing a "related problem" that further affects its cash flow: it must reimburse member states for unspent expenses, explained Farhan Haq, one of the organization's spokespersons, during a press briefing.

"Kafkaesque Cycle"

"We are caught in a Kafkaesque cycle: we are expected to return money that does not exist," laments Guterres in his letter.

These shortfalls regularly force the organization to freeze hiring, delay payments, or cut back on its missions.

For the UN chief, this is no longer sufficient. He fears being unable to "fully implement the approved 2026 budget plan". "Worse yet, the cash for the regular budget could run out as early as July," he estimates.

Antonio Guterres, whose term ends at the end of the year, consequently calls on member states to "fully and timely honor their payment obligations" or to "thoroughly review the organization's financial rules."

With a budget of $3.4 billion, the 2026 budget is a 7% decrease from the previous fiscal year. Member states have also approved the elimination of approximately 2,400 positions, marking one of the tightest budgetary decisions in recent years.

On paper, the United States is the largest contributor to the UN, accounting for 22% for the 2025-2027 period, according to a calculation method based on each member state’s payment capacity determined by its national income. China is now in second place, contributing around 20%.

  • AFP