The ongoing turmoil in the financial markets and credit crunch has negatively impacted the ability of the Olympic Delivery Authority (ODA) to raise funding to build the 2012 Olympic Village.
The ODA says that has only raised half of £1BN needed for the athletes' village and media centre in Stratford, East London.
The shortfall may have to be taken out of the Olympics contingency fund.
As noted many time before the budget for the games, even before the credit crunch, was a work of fantasy; ballooning from £3.4BN to currently £12BN (including £2BN running costs).
The last time that the games were held in London, in 1948, the UK was experiencing an austerity economy as the country struggled to get back on its financial feet after the war.
It seems that the organisers of the 2012 Games may have to adjust their expectations accordingly, to an "austerity" mindset.
Olympic Medals won during the Beijing 2008 Olympics
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