Though the UN General Assembly did approve a partial change to its financial system in late 2025, the organisation still faces a massive cash crisis compounded by a rule that means it is refunding money it never received.
At its headquarters in Geneva, signs warning of the situation have been put up everywhere. In an almost desperate attempt to save cash, the escalators are regularly turned off and the heating turned down.
Guterres wrote in his letter that the UN had faced financial crises in the past but that the current situation was “categorically different”.
“Decisions not to honour assessed contributions that finance a significant share of the approved regular budget have now been formally announced,” the secretary general said, without naming specific members.
He said the “integrity of the entire system” depended on states adhering to their obligation under the UN charter to pay their “assessed contributions”, adding that 2025 ended with a record amount unpaid – equivalent to 77% of the total owed.
Guterres said a rule that the UN must return unspent money on particular programmes to members if it could not implement a budget created a “double blow” in which it was “expected to give back cash that does not exist”.
“I cannot overstate the urgency of the situation we now face. We cannot execute budgets with uncollected funds, nor return funds we never received.”
As a result, the UN is now returning millions of dollars it never actually had.
The letter reads: “Just this month, as part of the 2026 assessment, we were compelled to return $227m [£165m] – funds we have not collected.”
“The bottom line is clear,” Guterres wrote. “Either all member states honour their obligations to pay in full and on time – or member states must fundamentally overhaul our financial rules to prevent an imminent financial collapse.”