Olympic bosses recalculate

LONDON.

London's Olympic chiefs are having to rework budgets as the global credit crunch squeezes private funding for the 2012 Games.

The government expects about $12.4 billion dollars of private sector money to go into the Olympics and the regeneration of the area around Stratford. But fears are growing that developers are struggling to come up with the cash, and taxpayers will have to step in.

The $2 billion Olympic Village, which will provide accommodation for 17,000 athletes, is proving the biggest headache as Australia's Lend Lease, the preferred developer for the project, reportedly struggles to find the money.

A July government study warned the deal with Lend Lease was "significantly affected by the downturn in the financial and property markets since the turn of the year".