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Rio Declares Financial Emergency
The Brazilian state of Rio de Janeiro has declared public calamity over their finances less than 50 days before the Olympics.
Interim Governor Francisco Dornelles told reporters that the current financial crisis the state is going through may make it difficult for them to uphold their commitments for the Games.
Rio’s city government is where most public funding has come but they are also responsible for areas like transport and policing.
Interim President Michel Temer promised financial help.
The governor says that the financial struggle is because of crisis on a tax shortfall from the oil industry. Now the whole country has a deep recession.
This situation could accelerate the release of federal emergency funds.
Governor Dornelles said in a decree that the “public calamity” they are currently facing could lead to a “total collapse” in public services such as security, health and education.
The state has foreseen a budget deficit of $5.5bn for this year.
Rio expects about 500,000 foreign visitors during the Games.
