Rio declares financial emergency before Olympics

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. Interim President Michel Temer has promised significant financial help.

The governor has blamed the crisis on a tax shortfall, especially from the oil industry, while Brazil overall has faced a deep recession. The measure could accelerate the release of federal emergency funds. 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 $5.5bn (£3.9bn) for this year.

Brazil is also facing an outbreak of the Zika virus, which has been linked to the birth defect microcephaly in which babies are born with abnormally small heads frequently associated with developmental issues. Rio expects about 500,000 foreign visitors during the Olympics.


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