Rio 2016 can’t pay debts, offers air conditioners

The final contest of the 2016 Rio Olympics looks a lot like Let’s Make a Deal.

With 100 million reals ( approx. $ 32 million) in outstanding debts, the organizing committee is trying to pay off suppliers with stuff — air conditioners, portable energy units, electrical cables — in lieu of or in addition to cash.

The cash crunch is a legacy of the financial crisis that hit Brazil just as preparations for the Olympics were getting underway. Rio 2016 is now asking creditors to agree to settle debts for 30 percent less than they’re owed, said Mario Andrada, Rio 2016’ s head of communications.

Andrada said Rio remains hopeful it will meet its obligations by June, when the organizing committee shuts down. If it doesn’t, the burden will pass to local and state governments that backed the committee’s credit. Both governments now have financial trouble of their own, and it’s not clear whether they can pay off Olympic debts either. The

state government, on the verge of bankruptcy, is already struggling to pay public servants.

“We are confident we will come to an agreement and will honor our commitments,” Andrada said. The committee is still waiting on some money from sponsors, he said.

Brazil’s economic crisis also coincided with the biggest corruption scandal in the country’s history, which led to the trial and conviction of some prominent business and political leaders. Among those are heads of construction companies that built projects related to the Olympics, which cost about $ 20 billion, as well as Sergio Cabral, Rio’s governor when it won the bid to host.

Andrada said Cabral and others jailed in Rio may be using some of the furniture from the Athletes Village after mattresses and blankets were sent to a local prison for former police officers.

“He’s probably sleeping on an Olympic mattress,” Andrada said.