UN Transcripts — https://transcripts.un.org/en/ga/c5/79/34
Fifth Committee, 34th meeting - General Assembly, Second part of the resumed 79th session. — Fifth Committee — 19 May 2025
Language: en
Automatically generated transcript — may contain errors. Not an official United Nations record.

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5th Committee · Chair [0:03]:

Buenos días. Declaro abierta la trigésimo cuarta sesión de la quinta comisión de la segunda parte de la continuación del septuagésimo noveno período de sesiones. Invito a la comisión a que reanude el tema...

I call to order the 34th session of the Fifth Committee at the second part of our resumed 79th session. I invite the committee to resume its consideration of agenda item 141 entitled Improving the Financial Situation of the United Nations. As you recall, the Assistant Secretary-General and Controller, Mr. Chandramouli Ramanathan, presented the financial situation of the United Nations to the committee at its 33rd formal meeting held on 9th of May. The statement delivered by Mr. Ramanathan in that meeting has been issued as a report of the Secretary-General contained in document A/79/521/Add.1. In keeping with established practice, the committee will hold a general discussion on the item today. Before we turn to delegations for their statements, I give the floor to the Under-Secretary-General for Management Strategy, Policy and Compliance, Mrs. Catherine Pollard, and I invite her to provide the committee with updated information on the current financial situation of the United Nations. Mrs. Pollard, you have the floor.


UN Secretariat · USG Management Strategy, Policy and Compliance · Catherine Pollard [1:40]:

Thank you, Madam Chair. Good morning to you and to the distinguished delegates of the committee. I would like to update the committee on developments since you were briefed by the Controller 10 days ago. For the regular budget, Djibouti and Mali have paid in full, which brings the total number of member states having paid in full to 106. For peacekeeping operations, Djibouti and Egypt have paid in full all due peacekeeping assessments, which brings the total number of member states having paid in full to 67. For the international tribunals, Denmark, Djibouti, and Mali have paid in full, bringing the total number of member states who paid in full for this category to 84. The member states that are fully paid for all categories are reflected in paragraph 27 of the report A/79/521/Add.1 that is now before you. The Secretary-General wishes to pay special tribute to the 59 member states that have paid all assessments that were due and payable as at the time of reporting. Subsequent to the issuance of this report, payments were received from Djibouti and Denmark, and these member states are now fully paid for all categories. This brings the total to 61 member states. Additionally, we have received payments from the following member states: for peacekeeping operations, Guatemala, Lebanon, Mali, and Panama; for the international tribunals, Lebanon. On behalf of the Secretary-General, I would like to thank these member states for their positive action since the recent briefing on the financial situation of the organization. Thank you, Madam Chair.


5th Committee · Chair [3:12]:

Muchísimas gracias, Mrs. Pollard, for this updated information. The floor is now open for any delegations that wish to make a statement. I give the floor to the representative of Iraq on behalf of G77 and China.


Iraq · G77 + China [4:01]:

Thank you, Madam Chair, for giving me the floor. I have the honor to deliver this statement on behalf of the Group of 77 and China. The Group would like to thank Ms. Catherine Pollard, Under-Secretary-General for representation, and thank Mr. Chandramouli Ramanathan, the Assistant Secretary-General and Controller, for his presentation on the financial situation of the United Nations delivered on May 9th, 2025. The Group carefully reviewed the Secretary-General report contained in document A/79/521/Add.1 on the financial situation of the organization. The Group notes with concern that the organization continues to face serious liquidity challenges, particularly with its regular budget, due to unpredictable and delayed payment by member states. As of April 2025, collections were at their lowest in seven years, forcing the organization to rely heavily on internal borrowing from reserve funds and closed tribunals. Regarding peacekeeping operations, which follow different fiscal cycles, the Group also notes that the organization faces similar constraints. Despite a total $4.6 billion collected by April 2025, $2.7 billion remains outstanding, including substantial arrears for active and closed missions. Madam Chair, the Group of 77 and China notes with concern that the organization continues to face serious liquidity challenges and reiterate that the organization's ability to meet its financial obligations entirely depended on the timely and full payment of assessed contributions by member states. In this regard, the Group expresses deep concern over the high arrears of a single largest contributor, which have significantly aggravated the organization's liquidity constraints. It is especially troubling that this member state is currently responsible for over half of all unpaid assessments to both the regular and peacekeeping budgets, despite its capacity to pay. This is all the more concerning in the current context of mounting financial pressures. The continued withholding of contributions for political reasons, particularly by a member state that already benefit from structural imbalance in the organization's financial architecture and enjoy privileged privileges with the Security Council, undermines the principle of multilateralism and collective responsibility. The Group further reaffirms that no barriers should hinder member states from fulfilling their financial responsibilities to enable timely payment, particularly in view of the organization's recurring liquidity challenges. The Group urges all member states in a position to do so to honor their legal obligation by paying their assessed contribution in full, on time, without condition. Political consideration must not obstruct the financial stability of the organization. Madam Chair, we emphasize that sound and predictable financing is essential for the organization to carry out its mandate effectively. The Group expresses its appreciation to those member states that have made tangible efforts to reduce their outstanding contributions, notwithstanding the significant financial pressure many continue to face. At the same time, we remain empathetic to the situation of the member states that are genuinely unable to meet their obligations due to circumstances beyond their control. Finally, despite bearing an increasingly disproportionate share of the organization's financial responsibilities, the Group of 77 and China remains committed to engaging constructively in the effort to resolve the current financial crisis. We call on all partners to demonstrate similar resolve and accountability. Failure to do so will only weaken the organization at a time when a strong and responsive United Nations is needed more than ever. I thank you, Madam Chair.


5th Committee · Chair [8:11]:

I thank the representative of Iraq on behalf of G77 and China, and I now give the floor to the permanent representative of Singapore on behalf of ASEAN.


Singapore · ASEAN [8:27]:

Good morning and thank you very much, Madam Chair. It's a delight to see you resuming your important function as Chair of this very, very important committee. I have the honor to speak on behalf of the Association of Southeast Asian Nations on agenda item 141 on Improving the Financial Situation of the UN. And ASEAN aligns itself with the statement just made by the distinguished representative of Iraq on behalf of the Group of 77 and China. ASEAN thanks Controller Chandramouli Ramanathan for his update on the financial situation of the organization on the 9th of May 2025. And I also thank Under-Secretary-General Catherine Pollard for her presence today and for her updates this morning. As we mark the 80th anniversary of the UN's founding, it is deeply troubling that the UN's chronic liquidity problem has simply become part of the organization's operating assumptions. We have heard from the Secretariat's briefings to member states that the organization is being forced to operate at 83% of its approved budget, along with an extended hiring freeze until August. This has no doubt affected mandate delivery in some areas, especially given the uneven distribution of liquidity across the various departments. In the Asia-Pacific region, the UN... UN ESCAP has had to resort to strict liquidity mitigation measures due to the withholding of approved regular budget resources. These include the closure of the Secretariat building and on-site working space to all staff from May to August, and restrictions on all staff travel, meetings, and hiring of experts and consultants. This is particularly concerning as ESCAP is the biggest regional commission with 60% of membership from countries in special situations. Liquidity challenges have also plagued the peacekeeping budget. ASEAN notes with dismay that the percentage of unpaid assessments is on the upward trend despite the overall decline in the peacekeeping budget. We are especially concerned about the 2.67 billion in unpaid peacekeeping budget assessments at the end of April 2025. The precarious cash position for peacekeeping has increased the risk of payment defaults, which could affect operations on the ground. Madam Chair, ASEAN is committed to working with all member states on this agenda item to agree on measures to alleviate the UN's financial situation, while understanding that the root cause of this problem is the irregular, late, or non-payment of assessed contributions. As the organization seeks to make the UN more efficient, accountable, and fit for purpose under the Secretary-General's UN80 initiative, we must continue to ensure that the UN can deliver results for the world's people and accelerate the implementation of the SDG goals and the Pact for the Future. This will only be possible if all member states, all member states, fulfill their financial obligations in full, on time, and without conditions. We recognize that some member states face genuine difficulties in paying their assessed contributions due to circumstances beyond their control, and we commend member states who, despite these difficulties, endeavor to meet their obligations. Madam Chair, ASEAN remains fully committed to meeting our financial obligations so that the UN remains a credible institution that is well-equipped to tackle the complex challenges facing us today. We call on all member states to do likewise. I thank you for your attention.


5th Committee · Chair [17:35]:

I thank the permanent representative of Singapore on behalf of ASEAN, and I give the floor to the representative of Switzerland on behalf of Switzerland and Liechtenstein.


Switzerland · Switzerland and Liechtenstein [17:43]:

Madam Chair, I have the honor to speak on behalf of Switzerland and Liechtenstein. Let me reiterate our gratitude to the Secretary-General and the ACABQ for their reports. We're also grateful to the Under-Secretary-General Pollard and Assistant Secretary-General Ramanathan for their transparent and detailed briefings on the financial situation of the organization. This agenda item has become an increasingly urgent one. The chronic liquidity challenges of this organization are no longer a cyclical inconvenience. They are now structural in nature, undermining the organization's ability to plan, recruit, and deliver on the very mandates that we have agreed upon in these halls. For Switzerland and Liechtenstein, this is not merely a budgetary issue. It's a question of governance and of political responsibility. We're not only facing a financial crisis, we're facing a credibility crisis. Each delay in payment, each hiring freeze, each cancelled interpretation service chips away at the trust in our collective ability to uphold the decisions we take as member states. Madam Chair, Switzerland and Liechtenstein believe that this session must result in a concrete roadmap to restore the stability, efficiency, and trust in the UN's financial architecture. Now, allow me to highlight two measures that we believe are both necessary and achievable. First, we must introduce a mechanism to temporarily delay the return of credits under specific conditions. At present, large sums are returned to member states at the end of the fiscal year, even when doing so places the following year's budget execution at risk. This rigid practice may satisfy procedural formality, but it undermines operational continuity. Our delegations support the creation of a conditional, time-limited mechanism that allows the Secretariat to defer credit returns only when two clear criteria are met: when the implementation rate falls below 90% and when the liquidity situation is such that it could threaten delivery in the following year. This mechanism is not a loophole. It is a protective buffer designed to give the organization just enough breathing room to avoid paralysis in early January when incoming contributions are often delayed. It's a measured and responsible safeguard based on transparent triggers and limited in scope that protects the mandates we have adopted from disruption due to timing mismatches. Second, we support the controlled use of special commitments during the first quarter of the year. The financial year often begins with constrained liquidity due to the lag in the payment of assessed contributions. Without adequate instruments to bridge that gap, program delivery suffers just when new work plans begin. We therefore support the exceptional use of special commitments limited to the first three months of the budget year. This would allow the Secretariat to engage necessary obligations, maintain operational momentum, and avoid the premature return of unspent but still needed resources. Let us be clear, this is not a call for new resources nor for increased flexibility without oversight. It is a call for timing tools that match the reality of our cash flow patterns, tools that preserve the continuity and integrity of our shared work. Madam Chair, none of these proposals are radical. All of them are pragmatic, grounded in existing practices, and designed to preserve fiscal discipline, institutional credibility, and mandate delivery that we all value. We cannot allow liquidity issues to quietly dictate which mandates succeed and which ones falter. As member states, we must ensure that the decisions we make are implementable. Switzerland and Liechtenstein remain committed to working constructively with all delegations to deliver solutions that are balanced, effective, and urgently needed. I thank you.


EU · European Union [20:00]:

The lack of full and timely payment of assessed contributions by all member states. Therefore, the European Union and its member states reiterate in the strongest terms the obligation of every member state to pay its contributions in full, on time, and without conditions. We also urge those unable to do so to communicate transparent and reliable payment plans to enhance predictability and enable responsible financial planning. The data presented in the report is alarming, and they are not abstract figures. They represent real operational risk, deferred mandates, and delayed payments to countries contributing personnel and resources. The root cause of this crisis should be addressed. In the meantime, we call upon all groups and delegations to work together constructively and in a spirit of consensus to find a way forward. This session presents a new opportunity to analyze additional measures that minimize the impact of late and non-payments. However, such solutions must not place additional burdens on those who consistently meet their financial obligations, such as the European Union member states. Madam Chair, the United Nations is facing enormous challenges, and it is the fundamental responsibility of the Fifth Committee in particular to ensure that the organization has the necessary means to match the ambitions we collectively set through its mandates.

L'Union européenne est pleinement engagée à participer de manière constructive et dans un esprit de consensus pour trouver des solutions durables à cette crise financière. En attendant, nous continuerons à soutenir l'organisation avec responsabilité et flexibilité, y compris, lorsque cela est possible, en avançant les paiements et en proposant des catégories de contributions volontaires pour les opérations de maintien de la paix. Mais soyons clairs : le fardeau ne peut pas reposer sur quelques-uns. La solution réside dans le paiement universel, rapide et intégral par tous les États membres. Sous votre direction, Madame la Présidente, et avec une volonté collective, nous pouvons inverser ce cycle et permettre à l'organisation de planifier et d'exécuter ses mandats en toute confiance. Pour conclure, permettez-moi de réitérer le plein engagement de l'Union européenne et de ses États membres envers les Nations Unies. Je vous remercie, Madame la Présidente.


5th Committee · Chair [22:39]:

I thank the representative of the European Union and I give the floor to the representative of Norway.


Norway [22:43]:

Thank you, thank you, Madam Chair. Allow me to start by welcoming USG Pollard here today and for her briefing. We stand ready to support you in the important work you do to serve this organization. Madam Chair, a well-functioning, inclusive, and representative multilateral system and a world order based on international law is a core interest for Norway. The UN is and will remain the principal multilateral forum where all states have a seat at the same table. The importance of this organization makes certain demands of us all. We as member states need you, the UN Secretariat, to work in an effective, cost-efficient manner to ensure that the organization can implement its mandates. We as member states have an obligation to provide the UN with adequate guidance and funding. In short, we must all do our part and we must all pay our share. We must also provide the UN with the flexibility and discretion needed to effectively manage what has become an increasingly challenging financial situation. Norway has in the ongoing negotiations in this committee...

...proposed several measures which will provide the UN Secretariat with the flexibility they have informed us that they need. We are hoping that this committee can agree on these measures to ease the situation for the organization, but we are also aware that this will not solve the underlying cause of the liquidity crisis, that not all member states are paying in full and on time. Madam Chair, let me touch briefly on the ongoing reform process of the Secretary-General's UN80 initiative. We need the SG to be bold, radical, and ambitious in his approach, and we as member states must do our part in ensuring the success of this initiative. This is how we use this moment in time to strengthen the UN system and create an organization which is more fit for today's world as well as for tomorrow's. I would like to emphasize that our goal is a stronger, more effective, and more efficient UN that has impact and delivers for us all, globally and locally. Madam Chair, to ensure that we have a UN which is well-functioning, inclusive, and representative, its funding needs to be adequate and predictable. We therefore strongly urge all member states to fulfill their financial obligations as is set out in the Charter, namely in full, on time, and without conditions. I thank you.


5th Committee · Chair [25:35]:

Agradezco al distinguido representante de Noruega y le doy la palabra al representante del Reino Unido.


United Kingdom of Great Britain and Northern Ireland [25:44]:

Thank you, Madam Chair. The United Kingdom would like to thank the Controller, ASG Chandru Ramanathan, for his recent briefings on the management of the United Nations liquidity situation. Thanks also to USG Catherine Pollard for her presence here today, and finally a thanks to the Contributions Section for their diligent support of this committee's considerations of proposals to address the liquidity crisis. Madam Chair, we gathered in this room in March to collectively lament our concern over the UN's liquidity situation. In the short time since, liquidity constraints have increasingly impacted peacekeeping operations. However, there's little benefit to using this intervention to reiterate concerns over the occurrence and impact of insufficient contributions. We know there's a crisis, but for a change, we have a chance to do something about it. Madam Chair, during the first resumed session, we urged collaboration on creative, viable, and sustainable solutions to the UN's liquidity crisis. The United Kingdom is proudly committed to stabilizing the UN's finances, and from measures to restore reserves to additional management flexibilities, we are pleased to see the variety of potential solutions in the draft resolution.

To improve the liquidity situation, the United Kingdom views agreement on harmonizing the practice for credit returns and clarifying the criteria for special commitments as key measures to address the impact of late and non-contribution. It's imperative that we give clarity on year-end credit returns, protect mandate implementation, and allow for the timely presentation of amendments to the organization's financial rules and regulations. Madam Chair, permanent representatives from many member states mentioned concerns over the liquidity crisis at the Secretary-General's UN80 briefing last week. It is essential that we leverage the momentum and urgency for consensus on this critical agenda item. We must engage constructively, leave accusations over payment patterns at the door, and focus exclusively on sustainable solutions that benefit the UN's mandate delivery. Thank you, Madam Chair.


5th Committee · Chair [28:00]:

Agradezco al distinguido representante del Reino Unido y le doy la palabra al representante de la Federación de Rusia.


Russian Federation [28:10]:

Благодарю вас, госпожа Председатель. Thank you, Madam Chair. At the outset, I would like to thank USG Catherine Pollard for presenting information on the UN's financial situation. The UN's financial situation continues to be deeply troubling. The regular budget is increasingly unstable. Peacekeeping operations are facing systemic cash shortages. The need to borrow funds against closed accounts highlights the vulnerability of internal budget mechanisms, which were not designed to cope with such a level of outstanding contributions. In this regard, it's important for us to seek solutions while maintaining the responsibility of member states. That is why the Russian Federation supports the need for states to uphold their financial obligations in full, without conditions, and on time. At the same time, we are forced to note that this does not always depend on the states themselves. I am speaking of artificial barriers and the introduction of illicit unilateral sanctions...

...despite the fact that the final recipient of the payments is the UN. We believe that any discussion of additional budget instruments, whether this is a special commitment mechanism, return of credit, or cash pooling, that none of this can replace a fundamental principle, that is the responsibility of all member states. Flexibility shown here should not detract from the responsibility to pay for one's obligations. The same time we believe that efficiency mechanisms and measures which are in response to a lack of liquidity should be proportionate and should not undermine the functioning of key intergovernmental bodies. We're concerned that work in this area is being done on a unilateral basis, especially when this has to do with the work of statutory bodies. Even temporary restrictions must be drafted in close consultation with member states. They must be transparent. They must not affect decision-making processes and must not jeopardize the implementation of approved mandates. The UN80 initiative, which aims to revise expenditures, must be based on a robust financial foundation. In this context, we believe that states with the greatest financial capacity and that account for the largest share of the UN's budget should show leadership and fully uphold their obligations. This would be a strong message to send just before the launch of the UN80 initiative. This is the only way for the reform to have a strong basis and not be simply a forced reaction to a lack of resources. Thank you.


5th Committee · Chair [31:35]:

I thank the Russian Federation. I give the floor to the permanent representative of Kazakhstan.


Kazakhstan [31:43]:

Madam Chair, at the outset, I would like to express appreciation to Ms. Catherine Pollard for her comprehensive briefing and for the continued transparency and engagement by the Secretariat on this critical agenda item. And I congratulate you, Madam Chair, with resuming your responsibilities of this important committee. Kazakhstan aligns itself with the appeals made by the Secretary-General and wishes to reiterate the importance of ensuring the financial stability and operational continuity of the United Nations. The recent report of the Secretary-General illustrates the alarming trends in the organization's liquidity. Beginning 2025 with a 135 million cash deficit and with collections trailing estimates to the lowest level in seven years is an urgent wake-up call. This persistent cash shortfalls hinder mandate delivery, delay reimbursements to troop and police contributing countries, and force the organization to adopt emergency measures that are unsustainable in the long term. Kazakhstan has consistently fulfilled its financial obligations to the United Nations in full and on time, ranking among the first five member states to do so over the last four consecutive years. We consider this is not only a charter duty, but also a reflection of our principled support for effective multilateralism. We strongly encourage all member states to follow this example and to demonstrate their commitment through timely and predictable contributions without any conditions. Financial discipline is not just an accounting matter. It is a matter of credibility, solidarity, and of our collective ability to implement mandates entrusted to the United Nations by member states. The regular late payments and in some cases non-payments compromise the organization's ability to plan, operate, and deliver. We also note with interest the Secretary-General's recent proposals, including those outlined in the document A/79/734, aimed at addressing structural challenges and improving liquidity predictability. Kazakhstan supports exploring practical and consensus-based solutions to improve the organization's financial health and stands ready to engage constructively in that discussion. In this regard, we consider the UN80 initiative and the broader deliberations under the Pact for the Future as a timely opportunity to reaffirm our collective commitment to a stronger, more effective, and financially sustainable United Nations. I thank you.


5th Committee · Chair [34:31]:

I thank the permanent representative of Kazakhstan. We have listened to the last delegation inscribed on the list of speakers and since there are no further requests for the floor, I'm going to give the floor back briefly to Under-Secretary-General Pollard.


UN Secretariat · USG Management Strategy, Policy and Compliance · Catherine Pollard [34:51]:

Thank you, Madam Chair. I'd just like to thank all the delegations who spoke and who have recognized the serious problem of the organization's finances and the difficulties that the liquidity situation poses to effective mandate implementation in the budget. Madam Chair, the Secretary-General has proposed certain measures in the report before the committee and I would urge all delegations to make progress and to conclude on making decisions that could really help us to manage this situation that we do not find ourselves in this difficult situation year after year. And as you know, the Secretariat team, the Controller and his staff will be available 24/7 to work with, to support member states as you make these difficult decisions. I know, we know that these are very difficult decisions for member states, but necessary for the long-term sustainability of the organization. Thank you all for your engagement and thank you, Madam Chair.


5th Committee · Chair [36:05]:

Thank you, Under-Secretary-General, to you and your entire team. That brings us to the end of the general discussion on this item. The meeting is adjourned.