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Rio de Janeiro declares financial emergency

Rio de Janeiro declares financial emergency

Brazil

Rio de Janeiro has declared itself in a state of financial emergency as it scrambles to avoid a complete shutdown of vital public services ahead of the 2016 Olympic Games.

Speaking to the media, Acting Governor Francisco Dornelles told journalists he is hoping to work with Brazil’s federal government on a solution to the financial crunch.

“I hope that the federal government works together especially in the areas of public safety, health care, transportation which are very important issues for Rio de Janeiro,” he said.

Experts are now calling for the federal government to release some of the resources from public finances to help solve the looming crisis.

“The Olympics together with this delicate situation is something that technically is very unusual. It needs to be understood that this measure affects the federal government so that it releases some of the resources from public finances,” said Istvan Kasznar, an expert in public finances.

The state of Rio expects a budget deficit of over $5.56 billion dollars this year as spending planned before oil prices outstrips revenue is tumbling during Brazil’s recession.

Rio state’s debt has been downgraded several times.

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