Brazil's state-owned postal service, Correios, expects to close a new R$ 7 billion loan by Tuesday, Sept. 15, to ease its financial crisis. The deal is being negotiated with a syndicate of Citibank, J.P. Morgan and Deutsche Bank, plus Banrisul, the state bank of Rio Grande do Sul, according to news site g1. The company had already confirmed the amount in its first-half 2026 financial statements, released in late August.
Federal guarantee still under review
The deal depends on a federal guarantee, which Correios formally requested from the government on Sept. 3 and which remains under review, according to Tele.Síntese. With the backing, Brazil's Treasury would take over the debt payments if the company failed to honor the contract. Contacted by the outlet, Correios said the financial terms are still being negotiated with the banks involved and will be disclosed once talks conclude.
"A new credit operation of approximately R$ 7 billion is at an advanced stage of structuring. The operation has been discussed with potential participating financial institutions, with its main economic, financial and contractual elements at an advanced stage of alignment," the company said in its first-half statements.
In the same document, the company confirmed the federal government's commitment to inject R$ 6 billion in capital by the end of 2027, to strengthen its finances. This would be the second loan in under a year: at the end of 2025, Correios borrowed R$ 12 billion, also backed by a federal guarantee.
Payroll cuts lag behind target
Correios has posted losses for 15 consecutive quarters. In the first half of 2026 it lost R$ 5.6 billion, according to g1, though the second quarter came in better than the previous two, after a record R$ 3 billion loss in the first. On Aug. 20, the company opened a new voluntary redundancy program, the PDV-E, with sign-ups open until Sept. 30. The target is 10,000 departures in 2026 and another 5,000 in 2027, according to CNN Brasil. The previous program, launched in late 2025, drew only 3,181 takers, 31% of the target group, and is expected to save about 40% of the initially projected amount.
The money trail is straightforward: banks front the cash, the Treasury stands as guarantor and taxpayers sit at the end of the line if the company cannot pay. For senders and sellers who rely on the postal network, the loan keeps the service running while payroll cuts advance below target. For consumers and taxpayers, the potential cost appears only if the payment fails: in that scenario, the R$ 7 billion bill goes to the Treasury.