A Brazilian government official said that the country plans to transfer R$2.9B ($849M) "in emergency funds to the state of Rio de Janeiro to pay for infrastructure and security during the Olympic Games," according to Alonso Soto of REUTERS. A day earlier the governor of Rio "declared a state of financial emergency as a drop in revenues caused by a crippling recession and a slump in oil prices has left state coffers depleted" ahead of the Games that start on Aug. 5. A source said that the funds "would be used to pay for security personnel and finish a much-delayed metro line to the Olympic venue." Rio's "financial crisis threatens to disrupt public services during the Olympics when 500,000 foreign visitors are expected to visit the beach-side city known for its natural beauty." The federal government was "already considering an emergency loan to Rio after it missed several debt payments with multilateral banks in May" (REUTERS, 6/18). AL JAZEERA reported the transfer of the funds "was also reported by local media on Saturday." Reports said that interim President Michel Temer is "expected to announce the emergency funds on Monday in a meeting with several governors who are asking him for debt relief for their cash-strapped states." Rio had warned of "a total collapse in public security, health, education, transport and environmental management," if the loan would not be made available (AL JAZEERA, 6/18). BLOOMBERG's Randy Woods wrote while Brazil "is largely on track to host the Olympics, it has received some negative press." The recent setbacks include pollution along Rio’s iconic shoreline, "where Olympic sailing events will be held, travel risks related to the Zika virus, and the collapse of a seaside bicycle path that left two dead in April." The country "received similar criticism" about its preparedness to host the 2014 World Cup, which in the end was "widely viewed as a success" (BLOOMBERG, 6/18).
