Conclusion of Brazil subway line depends on loan approval

AP News
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Posted: Jun 04, 2016 4:43 PM

RIO DE JANEIRO (AP) — Brazilian officials say the conclusion of a new subway line crucial for the transportation of visitors to the upcoming Rio Olympic Games depends on the federal government's approval of a $390 million loan.

Rio de Janeiro's Transportation Department said Saturday in a statement that the National Development Bank has agreed to extend the loan but the Finance Ministry must still approve it.

The line is scheduled to be inaugurated on Aug. 1, four days before the games open on Aug. 5. On Friday, Transportation Secretary Rodrigo Vieira said work on the line cannot be delayed even by a day.

The O Globo newspaper, without citing sources, said the loan has not been approved because Rio's cash-strapped state government has not given guarantees it will be able to repay it.