World

UN warns of “imminent financial collapse” as unpaid dues threaten operations

United Nations Secretary-General António Guterres issues a stark warning that the world body could run out of funds by July unless member states pay their assessed contributions in full and on time

Updated 8 months ago · Published on 01 Feb 2026 9:02AM

UN warns of “imminent financial collapse” as unpaid dues threaten operations
The world body might need an overhaul of the organisation’s financial rules - February 1, 2026

THE United Nations is on the brink of what its Secretary-General has described as an “imminent financial collapse” unless urgent action is taken to address chronic shortfalls in member state contributions and reform outdated financial rules, António Guterres has warned.

In a letter to all 193 member states obtained by The Associated Press, Guterres said the organisation’s liquidity could be exhausted by July if regular budget dues are not paid in full and on time.

He urged countries either to honour their financial obligations or to agree a fundamental overhaul of the UN’s financial framework to avert a crisis that could severely disrupt operations around the world.

“Either all member states honour their obligations to pay in full and on time — or member states must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” Guterres wrote, emphasising the urgency of the situation.

The warning comes against the backdrop of mounting arrears, with the United States, traditionally the largest contributor, owing US$2.196 billion to the UN’s regular budget, including US$767 million for the current and previous years, according to UN officials.

The US also owes a further US$1.8 billion to the separate peacekeeping budget, figures show. Venezuela is the second-largest defaulter on the regular budget, with US$38 million in unpaid dues.

Guterres said the UN ended 2025 with a record US$1.568 billion in outstanding assessed contributions, more than double the amount at the end of 2024.

That shortfall has left the organisation’s liquidity reserves nearly depleted, threatening its ability to implement the US$3.45 billion regular budget for 2026 that was unanimously approved last December.

Compounding the problem is a longstanding financial rule that requires the UN to refund unspent funds to member states, even when those contributions were never received.

Guterres described this requirement as counterproductive and urged immediate change: “We cannot execute budgets with uncollected funds, nor return funds we never received.”

The US mission to the United Nations did not immediately respond to requests for comment on the letter or the dues situation. - February 1, 2026

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