Banks Face Deadline on Correios Loan as Brazil Freezes R$3 Billion to Protect Fiscal Target

Overview

• Brazil’s economic team lifted the projected deficit for federal state companies to R$9.2 billion from about R$5.5 billion, citing Correios as the main driver.
• The government imposed roughly R$3.0–R$3.3 billion in contingenciamento to keep the 2025 fiscal goal on track.
• Correios is receiving final bank proposals today for a loan of up to R$20 billion, after initial offers near 136% of CDI were deemed too expensive despite an expected federal guarantee, shifting the near‑term target to at least R$10 billion.
• The approved restructuring plan includes about 10,000 voluntary layoffs, sale or closure of roughly 1,000 deficit agencies, and around R$1.5 billion in property disposals.
• Correios’ parcel share fell from about 51% to 25%, it logged a R$4.3 billion loss in H1 2025 and burns roughly R$750 million a month, prompting tighter CGPAR oversight and warnings of a larger 2026 impact, with a return to profit targeted for 2027 if the plan succeeds.