What Caused the Crisis? After 12 Quarters of Losses, Correios Seek Help to Cover the Deficit

Written by Sara Aquino

Published on 19/10/2025 at 08:21

Foto: IA

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Post Office Faces Historic Crisis With Billion-Dollar Deficit and Seeks Loan of R$ 20 Billion to Avoid Financial Collapse.

The Post Office is experiencing one of the worst crises in its history. After 12 consecutive quarters of losses, the state-owned company has accumulated a deficit of R$ 4.36 billion just in the first half of 2025. The critical scenario has led the company to seek a loan of R$ 20 billion to try to balance the accounts and recover cash flow.

The crisis began in 2022, during Jair Bolsonaro’s government, and worsened under the current administration of Luiz Inácio Lula da Silva.

According to President Emmanoel Schmidt Rondon, the goal is to “recover the company’s liquidity” and reduce the burden of debts incurred in previous years.

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Personnel Expenses Pressure The State-Owned Company’s Accounts

A large part of the Post Office’s deficit is related to personnel expenses, which have grown continuously since 2022.

In that year, two salary adjustments raised costs by R$ 820 million, in addition to bonuses and benefits.

In 2023, the impact reached R$ 1.3 billion, and in 2024, new collective negotiations further increased the payroll by R$ 894 million.

In 2025, in just the first half, salary costs rose by R$ 547 million. In addition, the state-owned company has taken on a pension debt of R$ 2.4 billion with PREVIC, related to the Defined Benefit Plan (PBD), with payment forecasts until 2054.

These commitments exacerbate the financial hole and compromise the company’s cash flow.

“Blouse Tax” Reduced Revenues and Aggravated The Deficit

Another point that deepened the crisis at the Post Office was the Remessa Conforme program, created in 2023 by the Ministry of Finance.

The initiative established a 20% tax on international purchases up to US$ 50, which were previously exempt from tax, and allowed private companies to transport packages directly within Brazil — reducing the Post Office’s exclusivity in this segment.

The measure led to an estimated loss of R$ 2.2 billion in revenues. The state company saw its revenue from international packages fall from R$ 2.1 billion in 2024 to just R$ 815 million in 2025, a decline of over 60%.

This reduction directly affected one of the company’s main sources of income, which had previously accounted for nearly 25% of its revenue in recent years.

Cash In Collapse And Dependence On Loans

With revenue falling and expenses rising, the company’s cash flow has collapsed.

The available amount dropped from R$ 3.2 billion in 2023 to just R$ 249 million in 2024, a reduction of 92%.

Without resources, the Post Office turned to bank loans of R$ 550 million at the end of 2024 and R$ 1.8 billion in 2025, with interest rates of up to 21.99% per year.

Now, the new request for a loan of R$ 20 billion aims to replace these debts and restore financial balance.

According to Rondon, the amount will help pay off debts with suppliers, judicial obligations, and the Voluntary Dismissal Plan (PDV).

“We are conducting a resource-raising operation to recover the company’s payment capacity,” said the president.

Deficit Units And Increases In Judicial Claims Aggravate Crisis

Currently, 85% of the more than 10,000 Post Office branches operate at a deficit. Even so, the state-owned company maintains its commitment to offer services in all 5,567 municipalities in the country, as determined by the Universal Postal Union (UPU).

This obligation prevents the closure of deficit units, making restructuring more complex and costly.

In addition, the number of judicial claims has significantly increased, reaching R$ 1.6 billion in June 2025, more than triple the amount recorded in 2022.

These judicial liabilities consume a significant part of the budget and hinder financial recovery.

Restructuring Plan Seeks To Cut Costs And Generate Revenues

To try to contain the crisis at the Post Office, the company’s management has launched a new restructuring plan divided into three main axes: cutting operational and administrative expenses, diversifying revenues, and recovering liquidity.

Among the measures are a 20% reduction in the budget for commissioned positions, the sale of idle properties, incentives for reduced working hours, and the temporary suspension of vacations until 2026.

The state-owned company also intends to launch its own marketplace and raise R$ 3.8 billion with the New Development Bank (NDB) to invest in modernization and operational efficiency.

Privatization Back On The Agenda As An Alternative

Amid the search for solutions, the privatization of the Post Office has returned to debate in Brasília. Jurist Fernando Vernalha argues that the topic should be analyzed without ideology:

“We should discuss the matter with more pragmatism and ideological detachment. It is necessary to understand what is best for the citizen and for the Union from an economic perspective.”

However, experts point out that the structure of the state-owned company — required to operate throughout the national territory, including in unprofitable areas — makes it difficult to implement a total privatization model.

Uncertain Future And Risk Of Financial Collapse

The loan of R$ 20 billion appears as the main bet to avoid the financial collapse of the state-owned company.

However, analysts warn that without deep structural reforms, the crisis at the Post Office is likely to persist, threatening the sustainability of one of the largest public companies in the country.

What Caused the Crisis? After 12 Quarters of Losses, Correios Seek Help to Cover the Deficit

Post Office Faces Historic Crisis With Billion-Dollar Deficit and Seeks Loan of R$ 20 Billion to Avoid Financial Collapse.

Personnel Expenses Pressure The State-Owned Company’s Accounts

“Blouse Tax” Reduced Revenues and Aggravated The Deficit

Cash In Collapse And Dependence On Loans

Deficit Units And Increases In Judicial Claims Aggravate Crisis

Restructuring Plan Seeks To Cut Costs And Generate Revenues

Privatization Back On The Agenda As An Alternative

Uncertain Future And Risk Of Financial Collapse

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What Caused the Crisis? After 12 Quarters of Losses, Correios Seek Help to Cover the Deficit

Post Office Faces Historic Crisis With Billion-Dollar Deficit and Seeks Loan of R$ 20 Billion to Avoid Financial Collapse.

Personnel Expenses Pressure The State-Owned Company’s Accounts

“Blouse Tax” Reduced Revenues and Aggravated The Deficit

Cash In Collapse And Dependence On Loans

Deficit Units And Increases In Judicial Claims Aggravate Crisis

Restructuring Plan Seeks To Cut Costs And Generate Revenues

Privatization Back On The Agenda As An Alternative

Uncertain Future And Risk Of Financial Collapse

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