Press "Enter" to skip to content

UN Confronting $230 mn deficit, Might Not Be able to Cover staff salaries

Last updated on October 9, 2019

Even the United Nations has a general yearly operating budget of a few billion dollars, covering everything from fledgling work to disarmament, but right now, it is only trying to ensure its workers get paid following this month.

How did the planet body wind more than $200 million in the red?

The response: member nations not having paid their anticipated contributions, such as the USA.

On Tuesday, Secretary-General Antonio Guterres warned of this”worst money crisis facing the United Nations in almost a decade”

He cautioned that the UN” runs the danger of depleting its liquidity reservations by the end of the month and defaulting on obligations to employees and sellers.”

The UN doesn’t openly recognize those nations, but sources told AFP the key offenders are the United States, Brazil, Argentina, Mexico, and Iran.

In all, 64 nations spend money on the UN.

The last nation to have paid up is war-wracked Syria, UN spokesman Stephane Dujarric said Tuesday in his everyday press conference.

In a letter sent Monday to the 37,000 employees in the UN secretariat, that was acquired by AFP, Guterres said the UN needed a shortage of $230 million at the end of September.

On Tuesday, he suggested that when the world body hadn’t taken the initiative to decrease spending because the onset of the calendar year, the gap could have been bigger in October — maybe $600 million — also might have affected past month’s General Assembly attended by world leaders.

In his announcement on Tuesday, Guterres thanked the 129 member nations that have paid up” and urged people who haven’t paid to do this urgently and in full.”

To restrict expenditures from today until year’s end, the UN leader has increased the prospect of postponing meetings and seminars, restricting all but crucial official traveling, and decreasing services.

A UN official speaking on condition of anonymity said Guterres had increased the budget problems with member nations as early as this spring, requesting them to cover up, but they denied.

The percentage owed? Almost $1.4 billion.

Washington is also the biggest contributor to the UN peacekeeping tab.

President Donald Trump’s government has taken a tough line on UN financing, cutting pushing and contributions cost-saving reforms.