Un grapples with cash crisis over unpaid dues

United Nations Secretary-General Antonio Guterres has warned of a potential financial collapse due to unpaid fees. In a rare letter to all 193 member states, he urged governments to honour their mandatory payments or consider overhauling the UN’s financial rules to avoid further disruption. Despite more than 150 member states having paid their dues for 2025, total arrears have climbed to US$1.56 billion – double the amount recorded in 2024.

The United Nations is grappling with a severe cash crisis, primarily due to unpaid dues from member states. Secretary-General Antonio Guterres issued a rare letter to all 193 member states, warning of financial collapse if the issue is not addressed. He urged governments to honour their mandatory payments or consider overhauling the UN’s financial rules to avoid further disruption.

United Nations officials revealed that, despite more than 150 member states having paid their 2025 dues, total arrears have climbed to US$1.56 billion – double the amount from 2024. The US, the organisation’s largest contributor accounting for 22 per cent of the core budget, owes about US$2.19 billion to the regular budget and an additional US$2.4 billion in peacekeeping contributions. Washington has also withdrawn from several UN agencies, describing them as a waste of taxpayer money.

This situation reflects a shift in how the US views the body. Experts say that while China is a key UN member, do not expect it to fill the funding gap.

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The United Nations' serious financial difficulties, partly due to the United States' failure to make some contribution payments, present a good opportunity for UN reform, Kazuyuki Yamazaki, Japan's ambassador to the UN, said in a recent interview. Japan wants to play a constructive role in creating an efficient and effective United Nations, he added.

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