UN Photo/Y. Nagata UN headquarters building in New York. UN changes 75-year-old financial rule to avoid liquidity crisis UN
The UN General Assembly on Tuesday decided to change one of the Organization’s key financial rules, which, according to UN leadership, jeopardized its financial stability and could seriously complicate the work of peacekeeping operations and headquarters.
The new rule is being introduced as a four-year experiment from July 1, 2026. Now unspent funds will be returned to member states only if they are actually provided with the funds received. Until now, the system had been in place under which the UN was obliged to return money even in cases where the corresponding contributions were never actually received. peace.
“From the very beginning of my mandate, I have called for this change and am grateful to Member States for this important step,” said the Secretary General.
According to him, reform is crucial to ensure the continued functioning of the Organization, especially peacekeeping missions. Guterres added that this decision will greatly facilitate the work of the next Secretary-General, who will no longer have to return funds “which very often were not actually received.” averted the impending financial collapse of the UN and modernized an outdated financial rule that had been in place for 75 years and had long undermined the financial stability of the Organization,” she said.
According to the Chairman of the General Assembly, the consequences of the decision will be quite practical. More than $900 million, which will no longer have to be returned to member states, will be able to remain in the peacekeeping budget. These funds will be used to protect civilians, monitor ceasefires and promote peaceful resolution of conflicts.
In addition, approximately $400 million will remain at the disposal of the UN regular budget. As Berbock noted, this will avoid the closure of some of the divisions of the Organization’s headquarters as early as next year.
At the same time, both the Secretary General and the Chairman of the General Assembly emphasized that changing financial rules in itself does not solve the main problem. Guterres thanked States for paying their assessed contributions on time and again called on all countries to fulfill their financial obligations in accordance with the UN Charter.
Berbock also noted that no reforms can ensure sustainable funding for the Organization without timely and full payment of contributions by Member States.
60~p>“The UN cannot be expected to do more and more if member states retain the financial resources necessary to implement the mandates they themselves have collectively adopted,” she stressed.
The decision was the result of almost ten years of negotiations. During the 79th session of the General Assembly, countries failed to reach agreement on this issue. Now the new system will begin to operate from July 1, 2026 within a four-year trial period