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UN Faces Imminent Financial Collapse, Warns Guterres

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Unpaid dues and budget rules push world body to the brink of insolvency.

United Nations Secretary-General Antonio Guterres has issued a stark warning about the organisation’s financial state, suggesting the UN is at risk of ‘imminent financial collapse’. The warning stems from unpaid member state dues and a budget rule that requires the UN to return unspent funds, even when those dues haven’t been received. The UN’s regular budget covers the costs of running offices worldwide, staff salaries, meetings, and development and human rights work.

In a letter to member states, Guterres highlighted a record $1.57 billion in outstanding dues for the UN’s regular budget. While the letter did not name specific nations, UN officials have indicated that the United States owes over 95% of the outstanding amount, totalling $2.19 billion. The US also owes another $2.4 billion for current and past peacekeeping missions. Contributions to the UN budget are based on the size of a member’s economy, with the US responsible for 22% of the regular budget.

The liquidity crisis coincides with the Trump administration’s policies, including withholding mandatory payments and cutting voluntary funding to UN agencies. A senior State Department official criticised the UN for alleged waste, fraud, and abuse, citing excessive staff compensation and spending on meetings. The approved UN regular budget for 2026 is $3.45 billion.

Guterres has launched a reform task force to cut costs and improve efficiency. He also criticised a ‘Kafkaesque’ rule requiring the UN to credit back hundreds of millions of dollars in unspent dues, even if it never received the money. The United Nations is an international organisation founded in 1945 after World War II. It is currently made up of 193 Member States, with the mission to maintain international peace and security.

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