UN Secretary General António Guterres has warned member states that the United Nations faces an imminent financial collapse. He pointed out that unpaid dues, rigid budget rules, and shrinking liquidity strain the United Nations capability to operate further.
In a letter sent this week to all permanent representatives, Guterres said the world body faces a moment of truth. He cautioned that without full and timely payment of assessed contributions or sweeping reform of financial regulations, the UN may soon be unable to function.
System under strain from unpaid contributions
In the unusually blunt message dated Jan 28, the secretary general described the UN’s current financial path as untenable. He said the organisation now faces structural risk, forcing a stark choice between deep reform and institutional failure.
Although the UN has endured periods of non-payment before, Guterres stressed that the current crisis is fundamentally different. He noted that some member states have formally announced decisions not to honour their assessed contributions, significantly worsening the outlook.
He also highlighted what he termed a Kafkaesque paradox embedded in existing financial rules. Under current regulations, the UN must return unspent budget credits to member states even when those funds were never received.
Liquidity pressures reach critical levels
According to the letter, outstanding dues reached a record 1.568 billion dollars at the end of 2025, more than double the previous year’s level. Collections covered only 76.7 percent of assessed contributions.
Despite spending cuts and cost controls, liquidity reserves are nearly depleted. Consequently, the risk of severe cash shortages has increased, threatening programme delivery, staff payments, and overall operational credibility across peacekeeping, humanitarian, and administrative operations.
