18 June 2016
Just 50 days before the Olympics, the Government of Rio de Janeiro, a Brazilian state has declared a financial emergency.
The State’s Interim Governor, Francisco Dornelles said that the “serious economic crisis” threatens to halt the state from honouring commitments for the games.
The commitments to the games referred to by the governor, is the State’s responsibility for areas such as transport and policing at the games.
The Governor blamed the financial 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 also been severely affected.
Mr. Dornelles said the state faced “public calamity” that could lead to a “total collapse” in public services, such as security, health and education.
He however suggested that “exceptional measures” be taken ahead of the Games that could impact “all essential public services”, though details were not given.
According to Rio’s Mayor, Eduardo Paes, the State’s decision “in no way delays the delivery of Olympic projects and the promises assumed by the city of Rio”.