Madam Chair,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China on agenda item 138, entitled "Improving the financial situation of the United Nations".

2. The Group of 77 and China thanks the Controller, ASG Chandru Ramanathan, for the presentation of the report of the Secretary-General, as well as for the continued engagement of the Secretariat with Member States on this critical matter.

Madam Chair,

3. The Group remains deeply concerned by the continued deterioration of the Organization's financial situation across the regular budget, peacekeeping operations and the international tribunals. The information presented today confirms that the liquidity crisis has reached alarming levels and continues to place severe strain on the Organization's ability to effectively deliver on mandates entrusted by Member States.

4. The Group is also particularly concerned that one Member State continues to account for a disproportionately large share of the outstanding assessments to both the regular budget and peacekeeping operations, despite having the capacity to pay, which remains the root cause of the Organization's liquidity crisis.

5. With respect to the regular budget, the Group notes with serious concern that collections in 2025 were the lowest in the last seven years, ending with record arrears of approximately USD 1.57 billion. We further note that, as of 30 April 2026, unpaid assessments had risen to approximately USD 2.8 billion. The Group is particularly concerned that the Organization entered 2026 without liquidity reserves and that current cash balances are reportedly sufficient only to meet legal obligations through mid-August.

6. The Group also expresses grave concern regarding the financial situation of peacekeeping operations. As of 30 April 2026, unpaid peacekeeping assessments stood at approximately USD 3.5 billion. We note with alarm that outstanding contributions have continued to rise despite declining peacekeeping assessments, further aggravating the already fragile liquidity position of peacekeeping operations.

7. In this regard, the Group recalls that troop- and police-contributing countries, the majority of which are developing countries, continue to bear a disproportionate burden arising from delayed reimbursements. We note that outstanding liabilities for contingent-owned equipment amounted to approximately USD 483 million as of 30 April 2026. This situation is neither equitable nor sustainable and effectively places troop- and police-contributing countries in the position of financing peacekeeping operations on behalf of the Organization.

8. The Group further notes that the liquidity constraints have compelled the Secretariat to continue implementing cash conservation measures and using extraordinary liquidity mechanisms. While we acknowledge that the efforts undertaken by the Secretariat to manage cash prudently have provided temporary relief, the Group reiterates that such measures do not constitute a fundamental solution to the problem. These measures must remain exceptional in nature and cannot substitute for the fundamental obligation of Member States to pay their assessed contributions in full, on time and without conditions, in accordance with the Charter of the United Nations.

9. The Group further notes that, if no action is taken, the Organization may be forced to return approximately USD 1.3 billion in credits in 2027 across the regular budget and peacekeeping operations. In view of the severe liquidity challenges, the Group reiterates the importance of continuing discussions on proposals aimed at strengthening the Organization's financial resilience and liquidity management, particularly with regard to the return of credits, with a view to preventing what the Secretary-General has described as an "imminent collapse" of the Organization, while ensuring fairness and adherence to the fundamental principles of the United Nations Financial Regulations and Rules.

10. The Group stresses that no proposal should undermine the stability of the Organization's financial framework, and that all proposals should be carefully considered to avoid unforeseen consequences or adverse impacts on the existing United Nations financial system. In this regard, the Group has constructively put forward a proposal regarding the return of credits, offering a feasible, practical and effective way forward to help address the current liquidity challenges while minimizing any impact on the existing United Nations financial system. We encourage all delegations to give this proposal serious consideration and to work together towards a sustainable solution.

Madam Chair,

11. The significant level of arrears in assessed contributions undermines not only the financial stability of the Organization, but also the full and effective implementation of all mandated programmes and activities, thereby affecting the credibility, effectiveness and integrity of multilateralism itself.

12. In conclusion, the Group of 77 and China reaffirms its commitment to engaging constructively in discussions to identify the most appropriate responses to strengthen the financial stability of the Organization. We remain convinced that only through collective responsibility, full respect for financial obligations and renewed political commitment to multilateralism can the United Nations be equipped to effectively deliver on the mandates entrusted to it by Member States.

I thank you.