Financial Emergency declared in Brazil’s Rio de Janeiro

Rio de Janeiro 18th June 2016 The State of ‘Rio de Janeiro’ in Brazil has declared a State of Financial Emergency. With less than 50 days remaining for the opening ceremony, the announcement of economic instability by the hosts has deepened the shadow of uncertainty on the 2016 Olympics.

Rio-Olympic-Stadium Financial EmergencyUncertainty over the Olympics has been prevailing for some time now fuelled by the political instability in the country and the Zika virus related health concerns.

Francisco Dornelles, Acting Governor of ‘Rio de Janeiro’, on Friday classified the situation as ‘economic calamity’ in the official gazette. The steep decline in the prices of fuel is claimed as the reason for this financial emergency. The local authorities are unable to diligently carry out the organisational activities in preparation for the Olympics. There are indications of the economic crisis severely impacting public safety, health, education, transport and other public systems,

The entire world’s attention is focussed on these first ever Olympics to be held in Latin America from 5th to 21st August. But a series of problems have befallen Brazil leading up to this grand event. The country appears to be standing on the threshold of civil unrest due to the increase in taxes causing rising gasoline costs in spite of the fall in fuel prices, worsening economic crisis, the Zika Virus and the impeachment of President Dilma Rousseff etc.

By declaring a state of financial emergency, the government is able to borrow funds without approval from the state legislature. Still the declaration of financial emergency has sown doubts over the successful organisation of the 2016 Olympics.

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