Brazilian State of Rio de Janeiro has Declared a Financial Emergency

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.

Rio state employees and pensioners are owed wages in arrears. Hospitals and police stations have been severely affected.

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 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.