Brazil Government Allows Cities To Increase Debts In Preparation for 2014
Tuesday, 20th July 2010 at 10:21am
In response to comments made by Fifa officials about the slow progress being made in Brazilian cities ahead of the 2014 World Cup, the Brazilian government has brought in new measures to ensure that preparations get back on schedule.
In order to avoid embarrassment, Luiz Inacio Lula da Silva, the president of Brazil, has increased the amount of money that cities can borrow to help fund the required stadium developments and upgrades, and the necessary infrastructure work needed to improve the cities.
In a further boost to the host cities, President Lula also decreed that the National Bank for Social and Economic Development should give first consideration to any loan requests that come from projects related to the World Cup.
"It's an exceptionality we're creating so that the World Cup host cities can raise more debt to carry out part of the works," explained President Lula.
In addition to the new measures, the government has also made $3 billion available to make vital improvements and changes to 13 of the country's airports and seven of the nation's ports will receive a further $400 million.
In related news, Sao Paulo FC's Morumbi Stadium has been withdrawn from the list of venues for hosting 2014 World Cup matches because the club failed to attain assurances of the funds for a $350 million development project.
It is also thought that two other stadia, Atletico Paranaense's Arena da Baixada, in Curitiba, and Internacional's Beira-Rio, in Porto Alegre, could also face the axe.
2014 Brazil World Cup organising committee president Ricardo Teixeria moved to reassure football fans in the region that Sao Paulo would host World Cup matches, saying "inadmissible to have a World Cup in Brazil without the presence of Sao Paulo".