UN Chief Warns of 'Imminent Financial Collapse' as Cash Reserves Dwindle, Urges Member States to Pay Up
In a blunt letter to member states obtained by The Associated Press, United Nations Secretary-General Antonio Guterres painted a dire picture of the world body's finances, stating it risks "imminent financial collapse" without urgent action. The UN's cash reserves for its core operating budget are nearly exhausted and could be depleted by July, severely hampering global operations from humanitarian aid to diplomatic missions.
Guterres presented member nations with a stark choice: either all countries fulfill their financial obligations promptly and in full, or the UN's foundational financial rules require a fundamental overhaul. "We cannot execute budgets with uncollected funds, nor return funds we never received," the Secretary-General emphasized, highlighting a critical flaw in the system that forces the UN to refund unspent money to nations even if their contributions are overdue.
While no single country was named in the correspondence, the warning is widely seen as directed at the United States, the UN's largest contributor historically. According to internal UN figures, the U.S. currently owes approximately $2.2 billion to the regular budget, with an additional $767 million due for this year. On top of that, Washington owes about $1.8 billion for peacekeeping operations—a debt that continues to grow.
The scale of the arrears is unprecedented. The UN closed 2025 with a record $1.57 billion in unpaid assessments, more than double the shortfall from the end of 2024. This liquidity crunch threatens the organization's ability to fund its $3.45 billion regular budget for 2026, which was unanimously approved just months ago.
Venezuela, the second-largest debtor, owes $38 million and has already lost its voting rights in the General Assembly due to being two years in arrears. The U.S. mission to the UN did not immediately respond to requests for comment on the outstanding debts.
The financial impasse underscores a deeper political rift regarding multilateralism and burden-sharing. Analysts suggest that sustained non-payment, particularly from a major power, not only cripples day-to-day functions but also erodes the UN's credibility and capacity to respond to international crises.
Reactions & Analysis
Dr. Elara Vance, Senior Fellow at the Global Governance Institute: "This isn't just an accounting problem; it's a crisis of political will. The UN's work in conflict zones, on climate change, and with refugees grinds to a halt without reliable funding. The U.S. arrears set a dangerous precedent that other nations might follow."
Marcus Thorne, Former UN Budget Officer: "The structural issue Guterres identified—having to refund money never received—is absurd and paralyzing. Reform is overdue, but it requires consensus, which is precisely what's lacking when major funders withhold payments."
Anya Petrova, Political Commentator: "It's sheer hypocrisy. The same nations that demand the UN solve the world's problems then starve it of resources. This 'imminent collapse' is a manufactured crisis, a direct result of powerful members using the purse strings to bully the organization into alignment with their political agendas."
David Chen, Economist at Brookings: "The liquidity warning is a serious red flag for global stability. Many UN agencies operate on shoestring budgets as is. A collapse in core funding would have a domino effect, disrupting everything from health initiatives in developing nations to monitoring of nuclear non-proliferation treaties."