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Rio Is Having A ‘Financial Emergency’ 2 Months Before The Olympics
It stressed that the government could fail to honor its commitments to host the Rio 2016 Olympic and Paralympic Games, which are scheduled to take place August 5-21 and September 7-18, respectively.
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Rio de Janeiro state governor Francisco Dornelles has declared a state of emergency over a major budget crisis, just 50 days before the Olympics in a bid to release additional funding to fulfill obligations during the games.
State of Rio de Janeiro has requested federal funds, less than two months away from the Olympic Games.
The Brazil Olympics have already been marred by political turmoil that led to the suspension of President Dilma Rousseff, and an outbreak of the mosquito-borne Zika virus that has been linked to brain malformation in babies. “No country will make the Olympic Games so well done, so well equated as Rio de Janeiro and Brazil”.
Brazil’s economy is floundering amid a deep recession and Rio state is in a financial crisis because of relatively low oil prices.
“The financial crisis has brought several difficulties in essential public services and it could cause the total collapse of public security, health care, education, urban mobility and environmental management”, the statement said.
Al Jazeera’s Holman said the recession has also affected the delivery of other services in the country, with hospitals reporting of emergency rooms and other medical facilities not functioning.
Rio state Finance Minister Julio Bueno said “security was the state’s biggest cost”, according to the Post.
Responsibility for Games-related projects is split between the Federal, State and Municipal Governments, as well as the Organising Committee and private investors.
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“The only way that they can get more financial help from the union is in the case of calamity”, said an Olympic official with knowledge of the subject, who was speaking anonymously because he was not authorized to discuss the subject publicly.