The organizing Committee preparing the Olympic games in Rio de Janeiro, works with a shortage of funds in the amount of $121 to $151 million. it is reported Reuters citing a source familiar with the financial situation of the Committee.
We are talking about the structure that is financed from private funds, and not about the money directed from the state budget, the Agency said. The size of the deficit is approximately 6% of the budget of the Committee and about 1% of the total project cost which is estimated at $12.1 billion.
Source Reuters reported that the organizers are unable to reduce the deficit even though they already spent a lot of cuts. A senior official in the administration of the Rio de Janeiro told the news Agency that the organizers are still working to reduce costs.
A significant part of the budget has arisen due to the lease of the Olympic village. A large part of it will pay the Federal government, the local Committee has to pay only 10% of the cost (approximately $12.1 million). However, this agreement was concluded with President Dilma Rousseff in may, ousted from power in a period of six months, and the promised money is still not there, says one of the interlocutors of the Agency. Another blow to the budget of the organizing Committee was the amount of funding from the state oil company Petrobras, which fell on the background of oil prices and a corruption scandal around the Corporation.
Rio de Janeiro is in dire financial Straits and spending on the Olympics can not cover, told Reuters an unnamed senior official. The representative of the Committee to comment on the situation refused.
In June, the Agency reported that Rio de Janeiro will receive a $849 million for the games. The money they planned to spend on the salaries of security personnel and the completion of the metro line leading to the Olympic facilities.