The state government of Rio de Janeiro has declared a financial emergency, just seven weeks before the 2016 Olympic Games are due to begin in Brazil.
In a decree, Gov. Francisco Dornelles warned the crisis "may lead to the total collapse of public security, health, education, mobility and environmental management" in the state.
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To make sure the Games can go ahead, the decree authorized "all necessary emergency measures to ration essential public services".
Brazil's interim president, Michel Temer, has promised significant financial support, despite the state of Rio expecting a budget deficit of more than $5.