Brazil owes UN US$342 million and could lose voting rights in 2022

RIO DE JANEIRO, BRAZIL – The federal government has accumulated a past due debt with the United Nations that now reaches R$1.778 billion (U$342 million), which could result in the country losing its voting rights at the 2022 General Assembly, something “detrimental to the image of the State as fulfilling its international responsibilities,” according to the Foreign Ministry.

To prevent this embarrassment, Brazil needs to pay the minimum amount of US$114.3 million by December 31 this year, the Ministry of Economy said.

However, the federal government’s budget foresees only R$397.8 million for the UN, which means that the economic team will need to use resources from other areas to pay the most immediate debts. “Steps are being taken to request additional budget resources and subsequent payment until the end of this fiscal year,” the Ministry said.

PENDING DEBTS

Contribution to the UN regular budget: outstanding 2021 fiscal year (due on December 31), amounting to US$85.27 million, equivalent to R$443.4 million at the current exchange rate.
UN Peace Missions: debt in the accumulated amount of US$253.71 million, equivalent to R$1.319 billion. Amount referring to the 2016 to 2021 period (due on December 31).
Contributions to international courts: in the amount of US$3.08 million (R$16.016 million). Amount referring to the 2019 to 2021 period (due on December 31).

Should payment not be forthcoming, Article 19 of the UN Charter provides for the loss of voting rights as an immediate penalty. This occurs when a country’s total debt reaches the equivalent of 2 years of contributions.

The Foreign Ministry itself has classified the situation as “embarrassing.” Traditionally, the country’s president opens the UN General Assembly session with a speech.

Brazil’s opening speech has been held since 1947, when diplomat Oswaldo Aranha presided over the event on 2 occasions: during the debate on the status of Palestine, which since the end of World War I had been under British mandate, and during the 3rd United Nations General Assembly, which approved the creation of the State of Israel.

In addition, Brazil may also lose its right to vote in the Economic and Social Council, which discusses important issues such as sustainable development, energy, and innovation. The issues are extremely relevant for the country, since 59% of the Legal Amazon is located within Brazilian territory.

DEBTORS

Currently, there are only 3 countries with accumulated past due debts at the UN: Somalia, Comoros Islands and São Tomé and Príncipe. However, their governments have managed to prove that they are undergoing a severe economic crisis, and, therefore, have preserved their rights at the United Nations. Brazil is unable to allege similar claims.

Asked about the reason why the debts have not yet been settled, the Ministry of Economy reported that it only learned on August 12, through the Foreign Ministry, about the minimum amount to be settled.

“The full amount, R$397.8 million, is expected to be paid by December 31,” the Ministry assured.

ECONOMY MINISTER

The debt with the UN is yet another concern for Economy Minister Paulo Guedes with the public accounts. In recent weeks, he has been advocating the payment in installments of court-ordered federal government debts, rather than payment in full.