Haddad Conditions Any Correios Support on Recovery Plan as Congress Approves R$10 Billion Buffer

Overview

• Finance Minister Fernando Haddad said no loan, equity injection, or federal guarantee will be granted to Correios without a Treasury‑approved recovery or restructuring plan.
• Congress passed the 2026 budget guidelines removing R$10 billion from the state‑owned companies’ fiscal target, which Haddad described as a preventive cushion for a potential intervention.
• The Correios board voted on Nov. 29 to seek a R$20 billion loan with a sovereign guarantee, a transaction that still requires approval from the National Treasury Secretariat.
• A proposal from ABC Brasil, Banco do Brasil, BTG Pactual, Citibank and Safra was turned down because it carried a cost of 136% of the CDI, above the 120% ceiling for 10‑year Union‑backed operations.
• Correios reported a R$6.1 billion loss from January to September 2025, with officials citing high interest rates as a hurdle to securing market financing.