UN Bans Cash Returns For Debtor States

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The UN bans cash returns for debtor states. Credit: Reuters

The United Nations (UN) General Assembly adopted a new regulation on Tuesday that prohibits member states from demanding the return of unspent funds before paying their mandatory contributions to the financially struggling organisation.

Under this revised policy, the UN will disburse unused funds only to countries that owe the organisation absolutely nothing.

Secretary-General Antonio Guterres strongly praised the decision in an official statement, noting that he had advocated for this change since the start of his mandate to ensure immediate operational continuity.

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Guterres highlighted that the shift will immensely benefit his successor, who will no longer face financial constraints from being forced to return funds that the organisation frequently never even received in the first place.

The 193 member states fund the UN’s $3.4 billion regular budget for 2026—which reflects a seven per cent decrease from the previous fiscal year—through mandatory payments calculated according to their economic strength.

However, the organisation’s two largest contributors, the United States and China, regularly draw heavy criticism for delaying and stalling their payments.

UN (News Central TV)
The UN bans cash returns for debtor states. Credit: Reuters

This financial gridlock prompted Guterres to issue a stark warning in January regarding a potential financial collapse.

He cautioned that the UN faced severe instability if certain nations, specifically including the United States under President Donald Trump, continued to baulk at paying their outstanding debts.

Author

  • Abisoye Adeyiga

    Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.

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