GOOD NEWS! United Nations On Verge of “Imminent Financial Collapse”

A general view shows a Security Council meeting at the United Nations headquarters, Thursday, April 18, 2024. (AP Photo/Yuki Iwamura)

United Nations Secretary-General António Guterres warned member states that the global body is facing a deepening financial crisis that could lead to an “imminent financial collapse,” citing unpaid dues, reduced contributions and restrictive budget rules that limit the organization’s flexibility.

In a letter dated Jan. 28 and obtained by Reuters, Guterres told ambassadors that the U.N.’s financial position is deteriorating rapidly and could disrupt key operations and programs.

“The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future,” Guterres wrote.

The warning comes as the United Nations grapples with a significant cash shortfall, driven in part by reductions in U.S. funding. The United States, the U.N.’s largest contributor, has cut voluntary funding to U.N. agencies and has declined to make certain mandatory payments to the organization’s regular operating and peacekeeping budgets.

Guterres said in the letter that “decisions not to honour assessed contributions that finance a significant share of the approved regular budget have now been formally announced,” though he did not specify which countries were responsible for the shortfalls.

Under current U.N. financial rules, the organization is required to return unspent funds at the end of budget cycles, limiting its ability to build reserves or buffer against delayed payments. Guterres said those rules, combined with late or unpaid contributions, have left the U.N. increasingly vulnerable to cash-flow crises.

“Either all Member States honour their obligations to pay in full and on time — or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” Guterres wrote.

He warned that without corrective action, the U.N. could run out of cash as early as July, raising concerns about the organization’s ability to sustain peacekeeping missions, humanitarian operations and core administrative functions.

The financial strain underscores broader tensions between the U.N. and some member states over funding, governance and the scope of the organization’s activities, as debates continue in Washington and other capitals over the future of multilateral institutions.

(YWN World Headquarters – NYC)

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