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Financial emergency declared in Rio ahead of Olympics

Rio de Janeiro, June 18: The upcoming Olympic Games from August 5 to 21, will not be affected by the Rio de Janeiro state government’s decision to declare a financial emergency, organisers said.

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Increasing the uncertainty in the country is the controversial impeachment process against Brazil’s President Dilma Rousseff, who has been suspended for allegedly breaching spending accounting rules.

The local organising committee for the games said the state’s fiscal situation did not impact its actual running of the Olympics, which relies entirely on private funds.

Since late a year ago, the state has been forced to delay pension and salary payments and pull down the shutter at some schools and hospitals, where crucial supplies, including medicines and syringes, are lacking. “Besides, on the issues of security, where the mayor’s office is not responsible, we are certain the partnership with the federal government will work”.

He seemed to further distance the two entities by also Tweeting the city had fulfilled most of its obligations for the games.

Rio estimates that it will receive around 500,000 visitors for the Olympic Games.

Police, teachers and other government workers in Rio state have also seen paychecks delayed because of the cash crunch. “Most of the resources, funding, equipment and manpower comes from federal [government]”, he said.

The financial emergency is just the latest crisis to hit Brazil. “He can contract services without bid loans”, Baa said.

The 2016 Summer Olympic Games will be held in Rio de Janeiro on August 5-21.

“The state of Rio has widely exceeded the limit for debt that it can legally have”. With the move, Rio de Janeiro will be able to contract a $840,000-loan to pay for the construction of a subway line and wages of law-enforcement officers until the Olympics.

Interim President Michel Temer has recently promised significant financial support to ensure Rio meets all of its commitments for the Summer Olympics.

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To make sure the Games can go ahead, the decree authorised “all necessary emergency measures to ration essential public services”.

Rio Olympics 2016