Treasury Blocks Correios' R$20 Billion Loan as Government Conditions Rescue on Recovery Plan

Overview

• Correios entered a new negotiation round with ABC Brasil, Banco do Brasil, BTG Pactual, Citibank and Safra to cut pricing to the 120% of CDI ceiling after being told the cap will not be relaxed.
• Finance Minister Fernando Haddad said no loan, guarantee or direct cash injection will occur before a formal recovery plan is approved and any support would comply with fiscal rules.
• Congress approved excluding R$10 billion from the 2026 LDO fiscal target for state firms as a preventive buffer that could enable a future capital injection if needed.
• The Federal Audit Court (TCU) opened an audit of the operation and ministers discussed a precautionary measure to limit rates in line with the Treasury reference.
• The state postal company reported roughly R$6.05–6.1 billion in losses from January to September, is seeking at least R$10 billion by year‑end, and says R$20 billion would fund operations through December 2027 under a two‑year restructuring plan.