Web Desk (MNN); United Nations Secretary-General Antonio Guterres has warned that the world body is facing an “imminent financial collapse” due to unpaid annual contributions and outdated financial rules, according to a letter sent to all UN member states earlier this week.
As reviewed by Al Jazeera on Friday, the letter cautioned that the UN is confronting a severe liquidity crisis and urged member states to either agree on urgent reforms to the organisation’s financial framework or face the real risk of institutional collapse. Guterres also called on countries to immediately clear their outstanding dues.
Addressing the issue during a news briefing, a UN spokesperson said the situation had reached a critical point. “When it comes to paying, it’s now or never,” spokesperson Farhan Haq told reporters, adding that the UN no longer has sufficient cash reserves to continue operating as it has in previous years.
Haq noted that the secretary-general has repeatedly raised alarm over the worsening financial situation, warning with increasing urgency each year as the organisation’s liquidity has continued to shrink.
While Guterres did not single out any country by name, the warning comes amid moves by US President Donald Trump to sharply cut Washington’s funding for multilateral institutions. The Trump administration has also announced plans to withdraw from several UN agencies and has promoted a new “Board of Peace” initiative, which critics say could marginalise the UN’s role.
Louis Charbonneau, UN director at Human Rights Watch, warned that the proposed initiative appeared to function as a pay-to-play global club, citing reports of a $1 billion fee for permanent membership. He urged governments to strengthen, rather than undermine, the UN and other institutions responsible for upholding international human rights, humanitarian law, and global accountability.
The United States currently contributes 22 percent of the UN’s core budget, followed by China at 20 percent. However, by the end of 2025, unpaid contributions had reached a record $1.57 billion, according to Guterres, though he did not disclose which countries were in arrears.
He stressed that member states must either meet their financial obligations in full and on time or agree to a fundamental overhaul of the UN’s financial rules to avert collapse.
Earlier this month, the UN approved a reduced budget of $3.45 billion for 2026, reflecting a 7 percent cut from the previous year as part of cost-cutting measures. Despite this, Guterres warned that the organisation could run out of cash as early as July.
One major issue highlighted in the letter is a longstanding rule that requires the UN to return hundreds of millions of dollars in unspent funds to member states each year, a practice Guterres described as unsustainable. He said the organisation was trapped in a cycle of being expected to refund money that it does not actually have.
According to the UN’s website, only 36 of its 193 member states had fully paid their regular 2026 contributions as of Thursday.
