9 Oct 2008

Global credit crisis hits London Olympics

6:59 pm on 9 October 2008

London 2012 Olympic chiefs say they face a $720 million shortfall in funding for the athletes village as the impact of the world economic crisis begins to bite into the project.

Work on the Olympic village, the most costly part of the Olympuic project has already begun but developer Land Lease is struggling to secure bank loans.

The Olympic Delivery Authority chairman John Armitt says the village and broadcast centre were planned in one economic environment and are having to be delivered in another.