The United Nations could face a severe liquidity crisis in August as unpaid and delayed contributions from the United States and China — which together account for 42% of the UN's core funding — pile up, according to a warning from the organization.
According to the latest financial report from the UN General Assembly's Fifth Committee on Administrative and Budgetary Affairs on Thursday (local time), the UN's cash position is rapidly deteriorating due to funding holds and delays from the US and China. The UN Secretariat estimates that the current cash balance will only sustain operations until mid-August.
The largest contributor to the UN's financial crisis is the United States, the biggest debtor. Washington currently owes more than $4.28 billion (approximately 6.4 trillion won) in arrears. The Donald Trump administration has labeled the UN a bloated and inefficient organization, pressuring the body by stating that overdue payments will be made only after high-intensity restructuring is implemented. China, which has become the second-largest contributor after the US, recently paid $844 million toward peacekeeping costs but still owes $455 million (approximately 690 billion won) in arrears.
Within the UN, concerns are mounting that if the cash shortage materializes, staff salary payments could halt and food and security programs could be paralyzed. In response to the financial difficulties, the UN has already begun cutting jobs, including reducing administrative staff by 3,000, and has moved up the withdrawal timeline for peacekeeping forces from African conflict zones such as the Democratic Republic of the Congo.
