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UN approves financial reform to boost liquidity, avert 'collapse'
🇵🇾 Paraguay /Elections & Politics

UN approves financial reform to boost liquidity, avert 'collapse'

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News From a news agency Approved/passed
  • The UN General Assembly approved a temporary four-year financial reform to improve liquidity and prevent "imminent financial collapse."
  • The reform modifies how the UN compensates member states for budget contributions, addressing a 75-year-old rule that undermined financial stability.
  • This change will free up over $900 million for peacekeeping operations, ensuring continuity and more predictable resource management.

The United Nations General Assembly has approved a temporary financial reform aimed at bolstering the organization's liquidity and averting what has been described as an "imminent financial collapse." The measure, set to last four years, alters the system through which the UN automatically compensates member states for budget contributions, even when those funds have not yet been received.

with this decision we avoid the imminent financial collapse of the UN by modernizing a 75-year-old obsolete financial rule that for too long has undermined the stability of the organization.

— Annalena BaerbockThe President of the UN General Assembly explains the significance of the approved financial reform.

This reform addresses persistent liquidity challenges and aims to prevent accounting adjustments that have historically reduced the actual resources available for UN operations, particularly its vital peacekeeping missions. UN General Assembly President Annalena Baerbock stated that the decision modernizes an outdated 75-year-old financial rule that had long undermined the organization's stability.

more than 900 million dollars destined for peace operations will not have to be credited, and will help protect civilians and maintain ceasefires.

— Annalena BaerbockThe UN General Assembly President details the direct financial benefits of the reform for peacekeeping missions.

The practical implications of this reform are significant. Baerbock highlighted that over $900 million designated for peacekeeping operations will no longer need to be credited back, thereby supporting efforts to protect civilians and maintain ceasefires. UN Secretary-General António Guterres welcomed the decision, emphasizing that it will enable more stable and predictable resource management.

This decision will allow us to manage resources more predictably and responsibly and improve the execution of mandates.

— António GuterresThe UN Secretary-General celebrates the reform, highlighting its impact on resource management and operational effectiveness.

"This decision will allow us to manage resources more predictably and responsibly and improve the execution of mandates," Guterres said. He underscored the reform's critical importance for operational continuity, especially for peacekeeping efforts, and noted that it will benefit his successor by removing the obligation to return funds that were often never received in the first place.

This decision will allow us to manage resources more predictably and responsibly and improve the execution of mandates.

— António GuterresThe UN Secretary-General emphasizes the reform's critical importance for operational continuity, especially for peacekeeping operations.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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