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Rio state declares 'public calamity' over finances | Rio state declares 'public calamity' over finances |
(35 minutes later) | |
The Brazilian state of Rio de Janeiro has declared a financial emergency less than 50 days before the 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. | 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. | 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. | 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. | |
What has gone wrong in Brazil? | |
In a decree, Mr Dornelles said the state faced "public calamity" that could lead to a "total collapse" in public services, such as security, health and education. | In a decree, 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 authorised "exceptional measures" to be taken ahead of the Games that could impact "all essential public services", but no details were given. | |
The state has projected a budget deficit of $5.5bn (£3.9bn) 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. |