Brazil‘s beachfront pearl Rio de Janeiro wants to issue $500 million in “Olympic Bonds” to get the host city for the 2016 Summer Olympics ready for the games.
Rio de Janeiro Mayor Eduardo Paes will ask President Dilma Rousseff and Finance Minister Guido Mantega to authorize the debt issue at a meeting next month, the mayor’s press office confirmed Tuesday. States and cities in Brazil must get federal approval for bond issues.
Proceeds from the city’s bond sale will be used to build out infrastructure and sports facilities for the summer games, the mayor’s press office said.
Brazil’s readiness to host high-profile sporting events such as the 2014 World Cup and 2016 Summer Olympics has been questioned by critics who point to the country’s outdated infrastructure, high crime rates and widespread poverty.
FIFA officials, for example, have said Brazil is behind schedule on stadium renovations and infrastructure projects key to a successful World Cup. Rio de Janeiro will host the opening and closing games at the world famous Maracana stadium.
Rio de Janeiro also received unwanted attention in November, when the government was forced to send in troops backed by armored personnel carriers to stifle drug-related violence in one of the city’s largest shantytowns.
By Jeff Fick, Dow Jones
