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The UN has changed a financial rule that existed for 75 years to avoid a liquidity crisis

The UN has changed a financial rule that existed for 75 years to avoid a liquidity crisis

Published on: 2026-07-01

Source: United Nations – United Nations –

An important disclaimer is at the bottom of this article.

June 30, 2026 UN

On Tuesday, the UN General Assembly decided to change one of the Organization’s key financial rules, which, according to UN leadership, threatened its financial sustainability and could seriously complicate the work of peacekeeping operations and headquarters.

The new rule is being introduced as a four-year experiment starting July 1, 2026. Now, unused funds will be returned to member states only if they are actually backed by received payments. Until now, the system required the UN to return money even in cases where the corresponding contributions were never actually received.
UN Secretary-General António Guterres welcomed the decision, noting that it would enable the Organization to manage resources from both the regular budget and the peacekeeping operations budget “more predictably and responsibly.”
“From the very beginning of my mandate, I have called for this change and am grateful to the member states for this important step,” said the Secretary-General.
According to him, the reform is crucial for ensuring the continuous operation 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 actually never received.”
The Chair of the 80th session of the General Assembly, Annalena Baerbock, called the adopted decision historic.
“With this historic resolution, the General Assembly prevented the impending financial collapse of the UN and modernized the outdated financial rule that had been in effect for 75 years and had long undermined the Organization’s financial stability,” she said.
According to the Chairman of the General Assembly, the consequences of the decision will be quite practical. More than 900 million dollars, which will no longer have to be returned to member states, can remain in the peacekeeping operations budget. These funds will be used to protect the civilian population, monitor compliance with ceasefire regimes, and promote peaceful conflict resolution.
In addition, about 400 million dollars will remain at the disposal of the UN regular budget. As Baerbock noted, this will help avoid the closure of some headquarters divisions of the Organization already next year.
At the same time, both the Secretary-General and the President of the General Assembly emphasized that changing the financial rules alone does not solve the main problem. Guterres thanked the countries that pay mandatory contributions on time and once again called on all countries to fulfill their financial obligations in accordance with the UN Charter.
Baerbock also noted that no reforms will be able to ensure sustainable funding for the Organization without the timely and full payment of contributions by member states.
“One cannot expect the UN to do more and more if member states withhold the financial resources necessary to fulfill the mandates they themselves collectively approved,” she emphasized.
The decision was the result of nearly a decade of negotiations. During the 79th session of the General Assembly, countries were unable to reach an agreement on this issue. Now the new system will come into effect on July 1, 2026, as part of a four-year trial period.

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