Rio de Janeiro declares state of financial emergency in advance of Olympics

RIO DE JANEIRO, June 18 (UPI) -- The state governor of Rio de Janeiro issued an order declaring a financial state of emergency just 49 days before the Olympics.

The order issued by interim Gov. Francisco Dornelles states that the "financial calamity" could prevent "the fulfilment of the obligations as a result of the Olympic and Paralympic Games Rio 2016."

According to CNN, Dornelles told Agencia Brasil that the low price of oil contributed to the economic crisis.

"I want all the people of Rio de Janeiro to understand that the state is experiencing a major financial crisis," he said. "There was a problem in the oil sector; there was a problem of economic recession, with our steel industry, with our automotive sector."

The order stated the crisis has been "causing severe difficulties in the provision of essential public services and can even cause a total breakdown in public security, health, education, mobility and environmental management."

Dornelles' order will allow the state to borrow additional funds for the upcoming Olympic games without approval from the state legislature and interim president, Michel Temer, has reportedly offered federal funds to ensure the games occur.

The state was responsible for the funding and construction of a Metro line extension meant to connect parts of the Olympic venue with the rest of the city, but it has not yet been completed.

"The Metro [extension] is not ready, and the state has said repeatedly that it needs resources," Rio 2016 organizing committee spokesman Mario Andrada said. "I think everyone realizes that the decree is likely to pave the way for the state to get these resources [from the federal government]"

Rio de Janeiro City, which is responsible for funding the majority of the Olympic projects, is in "absolute fiscal and financial comfort," Mayor Eduardo Paes wrote on Twitter.

He seemed to further distance the two entities by also Tweeting the city had fulfilled most of its obligations for the games.

"The state of calamity decreed by the state government in no way delays the deliveries of Olympic commitments made in Rio," Paes wrote. "Besides, on the issues of security, where the mayor's office is not responsible, we are certain the partnership with the federal government will work. Therefore, I renew here the confidence that we will hold exceptional games!"