This archive report was first published on 14 October 2019.
As the United Nations enters a period of record-level cash shortage, Secretary-General Antonio Guterres has expressed concerns that the agency may not have enough funds to cover payrolls by the end of November.
According to Guterres, there is approximately $1.4 billion in outstanding payments, with the Secretariat facing a potential default on salaries and payments for goods and services if more member states do not pay their budget dues in full.
The UN has taken measures to cope with the cash shortage, including limiting travel to essential trips only, cancelling or deferring meetings, and suspending webcasting for non-mandated events.
As of the end of September, member states had paid only 70 percent of the total assessment for the regular budget, with countries such as Argentina, the United States, and Senegal yet to pay their dues.
The austerity measures will affect operations in New York, Geneva, Vienna, Nairobi, and the regional commission, with vacant posts unable to be filled and non-post expenditures adjusted due to liquidity constraints.
Guterres emphasized that financial constraints undermine the agency's service delivery, with the UN facing a deep deficit in October and potentially exhausting its closed peacekeeping cash reserves.
