Unic Press UK: The United Nations is facing a financial meltdown, and this constitutes a serious threat to the organization’s capacity to deliver on its key mandates, the international body’s Secretary-General António Guterres said in a letter to the UN staff.
The present threat to the cash flow of the UN, which places the global body at a risk of running out of cash, is the consequence of the Member States’ not paying mandatory contributions in full on the due date.
“Caused primarily by the delayed contributions of Member States to the Regular Budget, this new cash shortfall is unlike those we have experienced previously. Our cash flow has never been this low so early in the calendar year, and the broader trend is also concerning: we are running out of cash sooner and staying in the red longer. I have appealed to Member States to pay their assessments on time and in full, and highlighted the risk the current situation poses to the delivery of mandates and to the reputation of our Organization,” the UN boss António Guterres wrote.
A report published by the UN illustrates that, as at the 30th June 2018, the amount of money paid into its coffers by the Member States’ for the 2018 assessment had peaked at approximately $1.49 billion; which represents a shortfall of more than $200 million when compared to the figures at the same period in 2017.
As of the date of Guterres’ letter, the countries that have paid their contributions are Iraq, Moldova, Japan, Lithuania and Mexico. $810 million of the 2018 shortfall is therefore the responsibility of the eighty-one countries that have yet to pay.