Speakers Suggest Delaying Credit Returns, Call Out United States’ Payment Defaults as Fifth Committee Discusses UN Financial Situation amid Severe Cash Crunch

As the United Nations faces the possibility of ending 2025 with a cash deficit, delegates in the Fifth Committee (Administrative and Budgetary) considered ways to surmount the looming crisis, from delaying credit returns to tackling payment defaults by the United States.

Today’s meeting comes on the heels of last week’s Fifth Committee discussion of the 2026 programme budget — during which Secretary-General António Guterres warned delegates of the risk of bankruptcy, even as he outlined cuts of 577ドル million (15 per cent) to his initial budget proposal. (See Pree Release GA/AB/4505 of 17 October.) The week before, the Committee heard from Catherine Pollard, Under-Secretary-General for Management Strategy, Policy and Compliance, who called attention to the Organization’s extremely limited cash position.

As of 30 September, 57 Member States still owed 1ドル.87 billion out of the 3ドル.5 billion in mandatory contributions — including 1ドル.5 billion from the United States. (See Press Release GA/AB/4504 of 9 October.)

Today, Ms. Pollard provided a further update, noting that the 46 Member States that are fully paid in all categories due at the time of reporting are reflected in paragraph 22 of the Secretary-General’s report on the financial situation of the United Nations (document A/80/440). Since the report was issued, full payments were received from Belgium, Botswana, Brunei Darussalam, Egypt and Zambia, as well, bringing the total number of fully paid Member States to 51.

Full payments have been received as follows: for the regular budget, Oman and Samoa, bringing the total number of fully paid Member States in that category to 141; for peacekeeping operations, Belgium and Botswana, bringing the total number to 61; and for the international tribunals, Zambia, bringing the total number to 116. In addition, payments have been received from Iraq for the regular budget, and Guatemala, Mongolia, Thailand and Tunisia for peacekeeping operations, she reported.

Deferring Return of Credits Key to Preventing Budgetary Paralysis

In the ensuing debate, speaker after speaker called on all States, especially the one country that should be the largest contributor — to commit to the full and timely payment of their assessments. They also expressed alarm at the possibility of what Switzerland’s delegate, also speaking for Liechtenstein, described as "financial asphyxiation".

"The liquidity shortage is no longer a mere budgetary warning — it is an institutional alarm bell," he added. If nothing changes, the Organization will begin the year without any financial safety net, he cautioned, adding: "If we fail to act today, we will find ourselves reforming again tomorrow — UN85, UN90, UN100 — not to move forward, but to repair once more the damage caused by our inaction." He called for responsible compromises and expressed support for the proposal to create a temporary mechanism for the deferred return of credits under specific conditions. This is not a procedural deviation, but "an essential safeguard to prevent a budgetary paralysis when the coffers are empty in January", he added.

However, China’s delegate pointed out that the suspension of regular budget credits "is only a temporary measure" — it is vital to tackle the root cause of the Organization’s liquidity crisis and promote a fair and equitable solution. The Secretariat should intensify efforts to urge "one certain Member State to meet its financial obligations", he said, also stressing the need for a culture of cost-efficiency and strict financial discipline.

Spotlight on United States More than 1ドル.4 Billion in Arrears

"It is incredible to us that the richest country in the world has pushed the Organization to the edge of collapse," said the representative of Cuba. The United States’ arrears — exceeding 1ドル.4 billion to the UN regular budget — "compel us to hastily consider substantive reforms to the UN", he said, also adding that, for the first time in many years, his country has been unable to meet its 2025 contributions due to the financial embargo imposed by the United States.

As of 16 October, unpaid assessed contributions amounted to 1ドル.85 billion for the regular budget and 3ドル.6 billion for peacekeeping, pointed out Iraq’s representative, speaking for the Group of 77 and China. The Member State who owes more than half of these arrears despite having the capacity to pay also uniquely benefits from the maximum ceiling on the scale of assessments and retains special privileges in the Security Council, she pointed out. Internal borrowing or the use of surplus funds from other accounts should remain strictly exceptional. She encouraged the Secretary-General during the General Assembly’s high-level week, to make a statement outlining the Organization’s financial constraints and identifying the largest outstanding contributors.

Contingency Plans for Peacekeeping Operations

Guyana’s delegate, aligning with that statement, called for greater predictability and timeliness in the reimbursement of troop- and police-contributing countries. Collections this year have been significantly lower than in the last four years, she noted, adding that delays in reimbursements place additional burdens on countries that already stretch their resources to support global peace.

The representative of the European Union, speaking in its capacity as observer, expressed regret that the Secretariat has been compelled to implement contingency plans in peacekeeping operations, though these budgets were adopted by consensus just four months ago. The total outstanding assessments have reached 5ドル.6 billion, representing nearly 60 per cent of the total budget. "The root cause of this crisis remains unchanged: the lack of full, timely and predictable payment of assessed contributions by all Member States," she said.

It is necessary to align the return of credits for the regular budget and international tribunals with the current practice for peacekeeping operations. "Importantly, not returning credits to those who have not paid their contributions should be the foremost consideration in any liquidity management decision," she stressed. She also pointed out that a significant portion of the Member States advancing payments — half of those to the regular budget and one third to the peacekeeping budget — are from the Union. Its member States continue to volunteer to upgrade assessment categories for peacekeeping operations. "The liquidity situation must not lead to placing undue burdens on those who consistently meet their financial obligations, such as the European Union member States," she stressed.

Impact on Mandate Delivery, Calls to Tackle Root Cause of Liquidity Crisis

The representative of Singapore, speaking for the Association of Southeast Asian Nations (ASEAN), expressed deep concern that unpaid assessments for the regular budget at the end of the third quarter were the highest in five years, forcing the Organization to operate at only 83 per cent of its approved budget. Spending restrictions are expected to continue into 2026, with "a real risk of bankruptcy going into 2027" if the situation persists.

These constraints have affected mandate delivery — in the Asia-Pacific region, the Economic and Social Commission for Asia and the Pacific (ESCAP) was forced to implement drastic liquidity measures, including closing its Secretariat building for months, restricting travel and meetings, halting recruitment and scaling back research and capacity-building work.

She stressed the need to tackle the root cause of the chronic liquidity crisis. "The issue is well known," she said, emphasizing that financial stability can only be achieved if all Member States with the capacity to do so pay their assessed contributions in full, on time, and without conditions.

The representative of the Russian Federation noted that the UN’s budget mechanisms were never designed to withstand large-scale disregard for payment discipline, nor such blatant neglect of mandates. Any cost-saving measures adopted in response to liquidity shortfalls, he stressed, must not impede the functioning of key intergovernmental bodies or the implementation of mandates.

It was unacceptable, he said, for the Secretariat to adopt such measures unilaterally, without consultation or consent from Member States. Noting that accelerated development of the "UN80" initiative is a reaction to the current financial crisis, he observed that many of the related proposals, though presented as reforms, in fact amount to budget cuts based on questionable or even arbitrary reasoning.

Solution Lies in Coherent, Sustainable Financial Practices

"The budget is just half the picture," the United Kingdom’s delegate said, adding that the Organization needs a coherent and sustainable set of financial practices. He called on the Committee to leverage the current momentum, adding: "We are close to a comprehensive set of liquidity solutions." These include harmonizing the practice of credit return in line with peacekeeping operations to ensure that the Organization is not returning credits to those States that have not paid in full. It also means ensuring that troop- and police-contributing countries are reimbursed in time, he said.

Saudi Arabia’s delegate emphasized that budget cuts must not affect the equitable geographical distribution principle or the effectiveness of the UN’s work across its three pillars of security, development and human rights. The representative of Haiti, which, despite its many challenges, has given its full contribution to the regular budget and met nearly all its obligations towards peacekeeping, called for a reassessment of his country’s scale of assessments, which has doubled since 2022.

Conditions of Service, Compensation International Civil Service Commission Officials, Chair of Advisory Committee on Administrative and Budgetary Questions

Also today, the Committee considered conditions of service and compensation for officials, other than Secretariat officials, serving the General Assembly. Martha Helena Lopez, Assistant Secretary-General for Human Resources, presented the Secretary-General’s report on the topic (document A/80/178). Recalling Assembly resolution 65/268, which decided that these conditions of service and compensation should be reviewed every four years, she added that, at this time, the Secretary-General proposes no changes to the conditions of service of full-time members of the International Civil Service Commission and the Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ). The annual net compensation of the three officials should be subject to a cost-of-living adjustment equivalent to the annual change in the midpoint net base salary of the most senior Secretariat officials, she added.

The representative of Iraq, speaking for the Group of 77 and China, requested more detailed information on the current level of the cost-of-living adjustment of these officials.

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* The 6th Meeting was not covered.

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