UN Warns of Severe Cash Crisis as Funding Shortfall Threatens Operations
UNITED NATIONS: United Nations Secretary-General António Guterres has warned that the global body is heading towards financial insolvency, with the risk of running out of cash by mid-August.
According to reports, the United States and China—two of the UN’s largest financial contributors—have either delayed or withheld their mandatory payments, significantly worsening the organization’s financial crisis.
The United States reportedly owes approximately $4 billion in unpaid contributions to the United Nations. In addition, Washington has withdrawn from several UN programs and agencies, including the World Health Organization, further straining international funding mechanisms.
China has also contributed to the financial pressure by delaying payments. While it recently paid around $850 million, it still has an outstanding balance of approximately $455 million.
Together, the United States and China account for nearly 42 percent of the UN’s core funding. Any disruption in their contributions poses a serious risk to the organization’s global operations.
Due to the ongoing crisis, the UN has already cut around 3,000 jobs, shut down several offices, and postponed payments to countries contributing troops to peacekeeping missions. Peace operations and humanitarian programs have also been affected by the funding shortfall.
