Guadalajara is confident of paying off its 399 million pesos (£19 million/$30 million/€24 million) debt from the 2011 Pan American Games by the end of the year in a move that could reignite the Mexican cities' bid for the 2018 Youth Olympic Games.

Fears had been growing that Guadalajara would have to pull the plug on their Youth Olympics bid because it still owes huge amounts of money to several firms involved in helping stage the Pan American Games (Opening Ceremony pictured top) last year.

But the Governor of Jalisco, Emilio González Márquez, who is also the Guadalajara 2011 chairman, believes the debt will be paid off by the end of the year.

"Transparency is a hallmark of this Government," he said.

"We feel we can pay all our bills by the end of the year and all our suppliers are aware of this."

Despite the reassurances given by Guadalajara, Pan American Sports Organisation (PASO) President Mario Vázquez Raña is said to be concerned about the issue and has requested clarification from the Organising Committee over how the debts will be paid.

The issue is a major headache for Guadalajara 2018 Youth Olympic bid leaders, many of whom worked on the Pan American Games, after the city was forced to withdraw from the 2014 Youth Olympic bid race on the eve of the vote following a poor evaluation report from the International Olympic Committee (IOC).

Its 2018 bid prospects were boosted by a successful 2011 Pan American Games but the debt problems have cast a slight shadow over the competition.

It may also struggle because the race for the 2018 Youth Olympics is set to be the most competitive in the event's short history with the IOC also receiving bids from Buenos Aires, Glasgow, Medellín, Poznan and Rotterdam.

All six must submit their Candidature File and other relevant documents to the IOC by October 15 and it remains to be seen if Guadalajara will be able to do this.

It is likely that it will, however, the next big milestone will come in February next year when the IOC Executive Board will announce the shortlist of Candidate Cities.

The report by the IOC Evaluation Commission on the Candidate Cities will come in May 2013, with the election of the host city to be made by the IOC in July 2013.

By Tom Degun

Source: wwwinsidethegames.com