The UN's financial situation is disastrous. China and the US are suspending payments of billions of dollars.
According to “WSJ”, Washington has not paid billions of dollars owed to the UN and has left dozens of its programs and agencies, including the World Health Organization. The US motivates its decisions to counteract what President Donald Trump calls waste. The US is over $4 billion in arrears to the UN. The crisis is deepening by China, which is gradually reducing its contributions, while considering itself the leading defender of the UN. Beijing still owes the UN $455 million. Money from the US and China accounts for over 40%. basic UN funding.
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The UN has entered a 'race towards bankruptcy'
UN Secretary-General Antonio Guterres warned that the organization was entering a “race towards bankruptcy” and pointed to the “very real prospect of financial collapse.” He announced that in the current situation, in mid-August the UN would run out of funds and lose financial liquidity. As “WSJ” points out, the peak of financial problems will coincide with the acceleration of the process of selecting Guterres' successor.
China announces that it will honor its financial commitments. The US, in turn, claims that its financial support depends on savings in the UN – among others. employment reduction and business travel restrictions.
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The UN is trying to save its situation with drastic spending cuts. Some offices were closed and as many as 3,000 were liquidated. jobs in administration. Translators' working hours were reduced and cuts were made at the headquarters in New York.
The UN also accelerated the withdrawal of troops from Africa and drastically reduced spending on peacekeeping missions.
As “WSJ” points out, the UN cannot borrow money, and its management has limited authority to restructure operations or fire employees whose salaries constitute 70 percent of the total. expenses. These matters are decided by the 193 UN member states.
