Brazil Issues Decree Clearing Path for Conditional Correios Rescue Under R$6 Billion

Overview

• A new federal decree allows non‑dependent state firms to submit economic‑financial rebalancing plans that can include Treasury injections and Union‑guaranteed loans, subject to CGPAR approval for up to two years.
• Haddad said any cash injection for Correios would be below R$6 billion and could be proposed via a congressional PLN rather than extraordinary credit.
• Talks with banks continue after the Treasury rejected a R$20 billion loan priced near 136% of CDI, above its informal 120% benchmark for guarantees.
• Officials are weighing a smaller guaranteed loan in the R$10–15 billion range or a loan plus Treasury bridge to cover urgent obligations by December 16.
• Correios management told worker representatives it will not renew the collective bargaining agreement to curb personnel costs, as 2025 current expenses are projected at R$22.9 billion and losses reached R$6.1 billion through September.