UN broke? May default on bills by end of month

Posted on: October 9, 2019 at 10:52:08 CT

The United Nations is facing its worst cash crisis in nearly a decade and is warning that it may be unable to pay its bills by the end of the month, while urging member states to pay their contributions to the world body immediately.

Secretary-General Antonio Guterres wrote to member states this week, saying that as of the end of September, they have only paid 70 percent of budget contributions, compared with 78 percent at this time last year.

“The Organization runs the risk of depleting its liquidity reserves by the end of the month and defaulting on payments to staff and vendors,” a statement by Guterres spokesman Stephane Dujarric said.

“Stressing the Charter obligation of Member States, the Secretary-General thanked the Member States who have paid their regular budget assessments, which is now 129, and urged those who have not paid to do so urgently and in full,” the statement said. “This is the only way to avoid a default that could risk disrupting operations globally. 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.”