UN Warns of Imminent Financial Collapse: Member States Face “Race to Bankruptcy”
Despite a partial financial system adjustment, the UN is grappling with a severe cash crisis, exacerbated by a rule requiring refunds on unreceived funds. This dire situation is evident in measures like turning off escalators and lowering heat at the Geneva headquarters. Secretary-General Guterres highlights the unprecedented nature of the crisis, citing non-payment of assessed contributions by member states and the “double blow” of returning unspent funds that the UN never actually possessed. The UN is now being forced to return millions, a situation that threatens financial collapse unless member states fulfill their financial obligations or overhaul current financial rules.
John Q. Hosedrinker