International Paralympic Committee president Philip Craven has said Rio 2016's financial position is "precarious" but dismissed rumours the Games would be cancelled.

Amid rising speculation that Rio 2016's organising committee has effectively spent all of its money on the Olympics, Craven and his senior staff held crisis talks with them and Rio mayor Eduardo Paes at City Hall yesterday.

Paes told the IPC he was ready to deliver 150 million Brazilian reals (€42m) to fill any hole in Rio 2016's budget, although there is currently a court injunction against the organising committee receiving any more public funding until it opens up its accounts.

After the meeting in Rio, Craven and his vice-president Andrew Parsons went to Brazil's capital Brasilia to meet government minister Eliseu Padilha, to impress upon him the importance of the Paralympics and the current problems it was facing.

Craven described these meetings as "very positive" but said money was needed if Rio was to put on a Paralympics to be proud of.

"Although the situation is pretty precarious, rumours that the Games may not go ahead or that sports may be cut are totally unfounded and not true," said Craven.

"Our aim right now is to bring in additional funding and resources in order to deliver the Games at the service levels expected by all stakeholders, most importantly the athletes.

"If no extra funding is available then the organising committee will have to implement further cuts to the Paralympic Games on top of the cuts we have already made alongside the IOC and Olympics.

"Regrettably, if no more funding is available then the organising committee's additional cuts will start to impact on the services offered to the athletes who have dedicated years of their lives to reach and compete at these Games. This is the last thing that we want to do."

Craven thanked Paes for his support but admitted the injunction was a "hurdle".

"Clearly, the simplest and easiest way round this is for the Rio 2016 organising committee to be open and transparent with its financial records in order to allow this additional funding to come in," he added.

This seems unlikely at the moment, as Rio 2016 spokesman Mario Andrada has repeatedly stressed that Rio 2016 is a private company and there are no major financial problems, beyond the constraint of trying to stage a third major sports event after the World Cup and Olympics in two years while in recession.

The organising committee is already more than two weeks late in paying travel grants to the various national Paralympic committees.

Craven, however, said Rio 2016 has now "committed" to paying these grants.

"Failure to do so could result in a number of countries being unable to attend the Rio 2016 Paralympic Games, an event they have been planning and preparing for a number of years," the Englishman added.