Overview

• The government is negotiating a bank-led operation with Banco do Brasil, Caixa and private lenders, with BTG Pactual, Citibank and ABC Brasil cited as participants in the talks.
• Interlocutors estimate Correios needs R$10 billion in 2025 and another R$10 billion in 2026, with the final loan size and each bank’s share still under discussion.
• Proceeds would fund working capital and adjustment measures such as a voluntary layoff program, changes to the health plan and the renegotiation of overdue liabilities to suppliers and social charges.
• The credit plan was discussed on Oct. 9 with ministers Fernando Haddad, Esther Dweck and Frederico de Siqueira Filho alongside Treasury and PGFN officials, following the appointment of new CEO Emmanoel Schmidt Rondon.
• Correios has reported deepening losses and negative equity this year; authorities and banks declined to comment publicly, and details are expected to be announced this week, according to the reporting.