Rio de Janeiro declare financial problems before games

The Brazilian state of Rio de Janeiro has declared a financial emergency less than 50 days before the Olympics.

Interim Governor Francisco Dornelles says the “serious economic crisis” threatens to stop the state from honouring commitments for the games.

Most public funding for the Olympics has come from Rio’s city government, but the state is responsible for areas such as transport and policing.

The governor has blamed the crisis on a tax shortfall, especially from the oil industry, while Brazil overall has faced a deep recession.

Rio state employees and pensioners are owed wages in arrears. Hospitals and police stations have been severely affected.

The state has projected a budget deficit of $5.5billion for this year.

There are also concerns over an outbreak of the Zika virus, which has been linked to birth defects, and the impact it could have on the city’s tourism.

Rio expects about 500,000 foreign visitors during the Olympics.

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