Rio declares financial emergency, requests funding for Olympics

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Trouble in Rio ahead of the Olympics

RIO DE JANEIRO (Reuters) - The governor of the Brazilian state of Rio de Janeiro declared a state of financial emergency on Friday, requesting federal funds to help fulfill obligations for public services during the Olympics, which start Aug. 5.

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Emergency measures are needed to avoid "a total collapse in public security, health, education, transport and environmental management," a decree in the state's Official Gazette said. The state's revenue has slumped in the last two years as global oil prices have collapsed.

The announcement followed this week's visit to the Olympic city of Rio de Janeiro by Interim President Michel Temer, who said the federal government would ensure obligations are met.

Related: Hostels in Rio slums to serve as housing for Olympics

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Hostels in Rio slums to serve as housing for Olympics
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Hostels in Rio slums to serve as housing for Olympics
Solange, a worker at Pousada Favelinha (Little favela) hostel, stands near an entrance, in Pereira da Silva favela in Rio de Janeiro, Brazil, April 21, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Milene prepares a room at Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, May 1, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A tourist leaves her room at Pousada Favelinha (Little favela) hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A room at Pousada Favelinha (Little favela) hostel is seen in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A man is reflected in a mirror in a room at Tiki hostel in Cantagalo favela in Rio de Janeiro, Brazil, April 15, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A room at Tiki hostel is seen in Cantagalo favela in Rio de Janeiro, Brazil, May 1, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A guest relaxes with the The Sugar Loaf mountain in the background at Pousada Favelinha (Little favela) hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A woman sits on a terrace at Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, April 16, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES TPX IMAGES OF THE DAY
A man walks along a terrace at Pousada Favelinha (Little favela) hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 21, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A room at Pousada Favelinha (Little favela) hostel is seen in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Solange, a worker at Pousada Favelinha hostel, talks to guests outside the hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Solange, a worker at Pousada Favelinha hostel, returns to the hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Solange, a worker at Pousada Favelinha (Little favela) hostel, poses for a photograph at the hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Houses are seen through a window of Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, May 1, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Solange, a worker at Pousada Favelinha (Little favela) hostel, prepares a room in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 21, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A drawing is seen on a wall at Pousada Favelinha (Little favela) hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Cats sit on a chair at Pousada Favelinha (Little favela) hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
British musician Tom Ashe poses for a photograph near the building where he is renting a room, in Pereira da Silva favela, in Rio de Janeiro, Brazil, May 2, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Ligia, the owner of Pousada Favela Cantagalo hostel, poses for a photograph near her hostel in Cantagalo favela, in Rio de Janeiro, Brazil, May 1, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A room at Pousada Favela Cantagalo hostel is seen in Cantagalo favela in Rio de Janeiro, Brazil, May 1, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A room for rent is seen at a house in Pereira da Silva favela in Rio de Janeiro, Brazil, May 2, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A suite is seen at the Mirante do Arvrao hostel in Vidigal favela, in Rio de Janeiro, Brazil, April 5, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Dois Irmaos (Two brothers) peaks are seen from the Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, May 1, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A guest walks along a terrace at Alto Vidigal hostel in Vidigal favela, in Rio de Janeiro, Brazil, April 23, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
A worker serves coffee to a guest at Pousada Favelinha (Little favela) hostel kitchen in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 29, 2016. Hostels in a few of RioÃs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
The combination picture shows views through hostel windows located in various favelas in Rio de Janeiro, Brazil April 15-24, 2016. Hostels in a few of Rioâs more than 1,000 slums serve not only as a cheap housing alternative for the more adventurous among the estimated 500,000 foreign tourists expected to arrive for the Olympics in August. The establishments also open up the rich culture of the city's shantytowns for travellers, giving them a glimpse into once "no-go" areas where about one-fifth of Rio's population lives. REUTERS/Pilar Olivares SEARCH "HOLIDAY FAVELAS" FOR THIS STORY. SEARCH "THE WIDER IMAGE" FOR ALL STORIES
Sugar Loaf mountain is seen through a window of Favelinha (Little favela) hostel in Pereira da Silva favela, in Rio de Janeiro, Brazil, April 21, 2016. REUTERS/Pilar Olivares
Houses are seen through a window of Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, April 15, 2016. REUTERS/Pilar Olivares
Ipanema beach is seen through a window at the Alto Vidigal hostel in Vidigal favela, in Rio de Janeiro, Brazil, April 23, 2016. REUTERS/Pilar Olivares
The Dois Irmaos (Two brothers) peaks are seen through a window of Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, April 15, 2016. REUTERS/Pilar Olivares
Houses are seen through a window of Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, April 15, 2016. REUTERS/Pilar Olivares
Christ the Redeemer statue is seen through a window of Scene hostel in Santa Marta favela, in Rio de Janeiro, Brazil, April 24, 2016. REUTERS/Pilar Olivares
Houses are seen through a window of Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, April 15, 2016. REUTERS/Pilar Olivares
Houses are seen through a window of Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, April 16, 2016. REUTERS/Pilar Olivares
Houses (R) are seen through a window as Copacabana beach is reflected on a glass at Tiki hostel in Cantagalo favela, in Rio de Janeiro, Brazil, April 15, 2016. REUTERS/Pilar Olivares
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The city is expecting about 500,000 foreign visitors during the Olympic Games. The local organizing committee for the games did not immediately respond to requests for comment.

While the majority of Olympic infrastructure costs have been spread across city, state and federal budgets, with some financing from private companies, the state is responsible for most day-to-day security and health services in Rio.

The state of Rio expects a budget deficit of over 19 billion reais ($5.56 billion) this year as spending planned before oil prices fell outstrips revenue that is tumbling during Brazil's worst recession since the 1930s.

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Rio state's debt has been downgraded several times.

On Wednesday, Fitch Ratings knocked Rio's debt rating to B- from B+, saying the state was suffering "a fast-deteriorating liquidity position."

Since late last year, the state has been forced to delay pension and salary payments and shutter some schools and hospitals, where crucial supplies, including medicines and syringes, are lacking.

Brazil is also facing an outbreak of the Zika virus, which has been linked to the birth defect microcephaly in which babies are born with abnormally small heads frequently associated with developmental issues.

(Reporting by Paulo Prada, Stephen Eisenhammer and Brad Brooks; Editing by Diane Craft and Richard Chang)

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