PlayFunding fears over 2012 Olympics
Published: Tuesday, 14 October 2008, 7:43PM
The global credit crisis has hit London's plans to host the Olympic Games in 2012.
£95 million of tax payer's money has been used to bail out part of the project.
The climate of financial uncertainty has left developers struggling to raise the £1 billion needed to build the Olympic Village.
Cash flow problems fuelled by the credit crisis have triggered fears that only a fifth of the planned Olympic media centre may be permanent after the 2012 Games.
On Tuesday it was revealed that the Government had dug deep into an emergency fund to keep the Games on track.
The Olympic Village project was originally intended to be a public-private partnership.
Contractors Lend Lease planned to fund the construction of up to 3,000 apartments, while the public purse was to cover infrastructure around the site.
The banking squeeze has reduced Lend Lease's ability to raise funds, however, and there is currently a funding gap of £250 million.
Despite the government bailout the prospect of more public finds being spent on the project has not been ruled out.
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