Rio de Janeiro's bid to host the 2016 Olympics has been boosted by last week's upgrade of Brazil's credit rating to investment grade, officials said.
"This is important because it gives the Olympic movement the certainty that Brazil has the financial security to deliver the games at the level required," Carlos Arthur Nuzman, president of the Brazilian Olympic Committee (COB), told Reuters.
"It consolidates a strong and safe candidature."
Organisers said the country's new status would help dispel the stereotyped, but long outdated, image of an economy ravaged by inflation, where a suitcase of bank notes was needed to buy a light bulb.
Standard & Poor's last week upgraded Brazil's credit rating one notch to "BBB-", praising its debt reduction efforts, prudent spending and growth prospects.
The move improved Brazil's ability to raise funds on the world's international capital markets.
It is a far cry from the early 1990s, where inflation at one stage reached over 2,000 percent and the local currency was devalued on a daily basis.
Nuzman said the organising committee was working hard to show that there was more to Rio than sun, sand, carnival and soccer.
He highlighted the country's economic strength.
"There are various positive factors; there's no more inflation, Brazil has enjoyed economic stability for a number of years, the value of the Real against the dollar is rising, the level of external investments in Brazil is enormous," said Nuzman.
"While there is a reduction in property investment in the rest of the world, it continues to grow in Brazil."
FACILITIES READY
Nuzman said staging the Pan American Games last year proved that Rio could stage a major event successfully despite failing in its bid to host the 2004 and 2012 Olympic games.
"It was practical, public proof of our capacity to organise mega-events and this was fundamental," he said.
"We realised we couldn't organise the Olympics without first staging the Pan American Games, this was the message."
The Pan American Games facilities, including the showpiece Joao Havelange stadium, were built to Olympic standard, at a cost of around $2 billion, with the 2016 candidacy in mind.
"Naturally, this will reduce the budget for the Olympics. The more expensive facilities are ready, and we only have the lower-cost ones to worry about," Nuzman said
As for other infrastructure, Nuzman said the transport plan for the 2012 bid, which involved building an extensive metro system, was too ambitious. This time, Rio has gone for a simpler system of dedicated bus lanes this time.
"The crucial point (in the 2012 bid) was transport because it was very ambitious and expensive and the International Olympic Committee understand that it was unviable.
"We have changed the transport project. This time, it's absolutely balanced and absolutely viable."
Brazil hosting of the 2014 World Cup was another cause for optimism.
"It's an enormous benefit. Mexico held the Olympics in 1968 and the World Cup in 1970, Germany had the Olympics in 1972 and the World Cup in 1974 and the United States had the World Cup in 1994 and the Olympics in 1996.
"A lot of infrastructure work will be done for the World Cup in terms of hotels, transport and security."
Nuzman also felt it was South America's turn to stage the Olympics for the first time.
"South America's moment has arrived, this is one of our arguments," he said. "We are talking bout a population of 400 million people," he said.
"When they talk in the United Nations about helping the youth of the world, we can't forget about the youth in South America."
(Source: Reuters)
