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UN Facing Cash Crisis Because Member States Behind on Payments, Could Run Out of Money Before End of Year

The United Nations is working low on liquid belongings and should not come up with the money for to cowl staffers’ salaries subsequent month, in accordance with Reuters.

“This month, we will reach the deepest deficit of the decade,” stated UN Secretary-General Antonio Guterres to the UN’s General Assembly Budget Committee on October 8. “Our work and our reforms are at risk.”

Member states haven’t been paying the group owed monies, and it has affected the UN’s backside line. Without that inflow of funds, Guterres stated the UN is liable to “entering November without enough cash to cover payrolls.”

Guterres has been engaged on spending cuts since January. Right now, vacant positions stay empty, journey bills have been reduce to the necessities and a few conferences could should be canceled or rescheduled.

In a statement, Stéphane Dujarric, Spokesman for the Secretary-General, stated member states who haven’t paid the quantity owed are urged to take action shortly.

“This is the only way to avoid a default that could risk disrupting operations globally,” learn the assertion. “The Secretary-General further asked governments to address the underlying reasons for the crisis and agree on measures to put the United Nations on a sound financial footing.”

UN Facing Cash Crisis Because Member States Behind on Payments, Could Run Out of Money Before End of Year
The United Nations might run out of cash as quickly as the top of November 2019. Getty

There are 193 member states within the UN. As of this writing, solely 129 have paid their common contributions to the common funds. At the top of May 2019, Guterres stated the group was in arrears for $492 million.

“We are at a tipping point,” Guterres stated, “and what we do next will matter for years to come.”

According to the Council for Foreign Relations, the U.S. contributed over $10 billion to the UN in 2017. That accounts for about one-fifth of the UN’s funds. Agencies that obtained the best amount of cash have been the World Food Program, the Department of Peacekeeping Operations and the Office of the UN High Commissioner for Refugees.

The U.S. is accountable for 22 % of the funds, which this 12 months equals greater than $3.Three billion. That means the U.S. owes $674 million for the 2019 funds alone. It nonetheless owes round $381 million for previous budgets.

Peacekeeping missions are financed by a distinct funds. The U.S. owes round $2.four million for these missions; although the U.S. is accountable for 28 % of that funds, the nation has promised to pay 25 %, the minimal quantity required by legislation.

President Donald Trump had been contemplating huge cuts in international assist however Reuters reported that he determined in opposition to these strikes after Congressional backlash in August 2019.

In the meantime, the U.N. says their means to hold out its duties is hampered by the shortage of funds.

“We are now driven to prioritize our work on the basis of the availability of cash, thus undermining the implementation of mandates decided by inter-governmental bodies,” stated Dujarric’s assertion. “The Secretary-General therefore looks to Member States to resolve the structural issues that underlie this annual crisis without further delay.”

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