Correios Pursues R$20 Billion Loan With Federal Guarantee as Cash Needs Loom

Overview

• Brazil’s postal operator says the credit package would fund a restructuring plan designed to restore financial balance by 2027.
• Net revenue has fallen 11.3% since 2021 and the company posted a R$4.3 billion loss in the first half of 2025 after a R$2.59 billion deficit in 2024.
• Personnel costs jumped 43.1% between 2022 and 2024 as overall administrative and commercial expenses rose 21%, while operational spending also surged.
• Economists argue the company lacks the cash generation to service such debt and warn a Treasury guarantee would shift substantial fiscal risk to taxpayers.
• Management launched another voluntary severance program and cost cuts, while immediate privatization is off the government’s agenda and seen as difficult given the heavy liabilities.