According to The Wall Street Journal, the United Nations is facing the threat of a financial crisis because the United States and China have not paid mandatory contributions to the organization’s budget.

The newspaper says the United States owes about 4 billion dollars in required payments. Washington had also previously withdrawn from several UN programs and agencies, including the World Health Organization. China’s arrears are estimated at 455 million dollars.

The report warns that the organization faces a serious financial risk because contributions from the United States and China fund about 42 percent of its core budget spending.

Amid the shortage of funds, the UN has implemented a large cost-cutting program. It has closed some offices, eliminated about 3,000 secretariat positions and reduced translators’ working hours. The organization has also cut some spending on its New York headquarters, including escalator operation and certain repairs.

The Wall Street Journal notes that the UN has limited options for overcoming its financial difficulties because it cannot borrow money. Its leadership also has limited authority to carry out major restructuring or staff reductions, while employee compensation accounts for about 70 percent of the budget.

The newspaper adds that personnel policy is largely determined by the organization’s 193 member states, which are more likely to support new initiatives than close existing programs. The UN is estimated to run about 40,000 programs. It also maintains separate budgets for core operations and peacekeeping missions, while specialized agencies determine their own spending and administrative structures.

The editorial team is not responsible for the content or accuracy of materials taken, submitted or received from other sources. Such materials are published solely for informational purposes and do not imply automatic support or endorsement of their content.