UN Runs Out of Money, Forced to Borrow from Peacekeeping Funds

The United Nations is facing a severe financial crisis, with its regular operating expenses depleted in mid-August, prompting the organization to borrow $98 million from peacekeeping funds. This move has strained the already limited peacekeeping funds, which are now expected to face further diversion of funds. According to Under Secretary General for Administration and Management Joseph E. Connor, the UN's financial situation is dire, with members in arrears totaling $3.7 billion, up from $2.8 billion at the end of May.

Key Takeaways:

The UN's regular budget ran out of cash in mid-August, necessitating a $98 million loan from peacekeeping funds.
The diversion of funds from peacekeeping may reach $200 million by the end of October and $300 million in November if nations in arrears do not pay their debts.
The US owes the largest amount of $1.18 billion, contributing to the overall arrears of $3.7 billion.
The UN's financial woes have been exacerbated by unexpected new expenditures, currency exchange losses, and fears of delayed US payments.
Secretary General Boutros Boutros-Ghali has ordered a freeze on recruitment, restrictions on staff overtime and travel, and delayed payments to vendors.
The organization is projected to owe over $1.2 billion to nations providing peacekeeping troops by the end of the year.

Statistics:

$98 million: Amount borrowed from peacekeeping funds since mid-August.
$200 million: Projected diversion of funds from peacekeeping by the end of October.
$300 million: Projected diversion of funds from peacekeeping in November.
$3.7 billion: Total arrears in paying regular and peacekeeping assessments.
$1.18 billion: Amount owed by the US.
$2.8 billion: Arrears at the end of May.
$1.2 billion: Projected amount owed to nations providing peacekeeping troops by the end of the year.

Sources:

"UN Runs Out of Money, Forced to Borrow from Peacekeeping Funds"

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