Correios Unveils Overhaul After R$12 Billion Sovereign-Guaranteed Loan

Overview

• The loan contract, published in the Diário Oficial, releases R$10 billion in December and R$2 billion by late January under a 15-year term with three years of grace at roughly 115% of CDI.
• Banco do Brasil, Caixa and Bradesco will lend R$3 billion each, while Itaú and Santander will provide R$1.5 billion each, all backed by a federal guarantee.
• Correios will use the first tranche to pay salaries, precatórios and overdue supplier debts to regain compliance and stabilize operations.
• The restructuring outlines three phases: cash recovery through March 2026, reorganization in 2026–27, and post-2027 corporate arrangements with an external consultancy and no privatization plan.
• Measures include a voluntary exit program for up to 15,000 employees, closure of about 1,000 branches, revisions to pay and the health plan, and a goal to return to profit in 2027, with an estimated annual impact of up to R$7.4 billion.