Brazil government freezes Rio state accounts

November 10, 2016

RIO DE JANEIRO (AP) — For the second time in a week, the Brazilian government has frozen the accounts of the state of Rio de Janeiro because of a large outstanding debt.

The state’s finance secretariat said Thursday the accounts will remain frozen until it pays 140 million real ($42 million) to the national government.

The state’s accounts had only just been unfrozen after repayment of an earlier 170 million real (US$53 million) debt.

The state declared a state of financial emergency ahead of Rio’s 2016 Olympic Games in August. That allowed the state to shift funds. Still, many public workers haven’t been paid in months.