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The host city of the 2012 Summer Olympics will be announced in Singapore on July 6
The host city of the 2012 Summer Olympics will be announced at an International Olympic Committee session in Singapore on July 6. According to Standard & Poor's, Moscow and Madrid are not among the favorites, reports Vedomosti. "All five candidate cities are key financial or commercial centers in their countries, and enjoy diverse and well-developed economies, with access to funding that is capable of absorbing Olympic investment plans. That said, London, Paris and New York should be able to cope with investment plans more comfortably than the others," Standard & Poor's report states. The report indicates that Moscow plans to invest $10.07 billion in the Olympics. The city could potentially raise funds on the debenture market. At present, the debt/revenue ratio of the Moscow city budget is about 25%. If it had to finance every capital investment on its own, the debt burden on the city budget would increase to 80-90% of the revenues, the report says. "It would be high compared with Moscow's peers at the same rating level but should be manageable," the S&P report concluded. According to Aton Capital analyst Alexei Yu, the revenues of the Moscow city budget were about $14 billion in 2004. In the seven years left till the start of the Olympics, they might double, reaching $28 billion. Therefore, Moscow could borrow about $7.78 billion for transportation projects, for example. So far, according to chair of Moskomzaim Sergey Pakhomov, the Moscow authorities have not yet raised the subject of borrowing. Nevertheless, the Mayor's office intends to follow strictly the assumption that the debt should not exceed 30% of the revenue portion of the budget. In his turn, Leonid Tyagachev, the president of the Russian Olympic Committee, announced that he considered the S&P report "rather irrelevant," and assumed that it might be "one of the tricks of the bidding campaign aimed against Moscow."
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