Brazil warns of funding crisis

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The Brazilian Olympic Committee has warned that Rio de Janeiro won't be able to pull off hosting the 2016 Olympics if a new law reducing the state's oil revenues is passed.

The committee said a bill approved in March 2010 in Brazil's lower house of congress would mean $4bn less in oil revenues for the Rio de Janeiro state. The impact would " leave Rio de Janeiro without the conditions needed to finance the projects needed for the 2016 Games, " the committee said. The Rio 2016 Committee added that it had complete confidence that the legislative powers would take these facts into consideration and that it would make itself available to governor SÉrgio Cabral, to fight for Rio de Janeiro's rights and for a "reliable compliance with the obligations taken on in an international contract". Meanwhile, Brazil's president has lashed out at critics who say the country is wasting money on the 2016 Olympics. Speaking at a slum in Rio in early March 2010, Luiz Inacio Lula da Silva said the selection of the city was extraordinary and had been done " despite the servile thinking from a portion of the Brazilian elite. " He called the Olympics " one more step in the esteem of the Brazilian people. " Brazil beat Chicago, Tokyo and Madrid in an International Olympic Committee vote in Octobe 2009r. In January 2010, the head of the IOC's co–ordination commission for Rio said the city was on track to deliver a " very good" Olympics.

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