The loan of R$20 billion from a group of banks to Correios became more distant. The National Treasury rejected the operation because it considered the interest requested by the pool of banks that agreed to carry out the operation excessive.
Approved last Saturday (29) by the Post Office Board of Directors, the operation is coordinated by five banks: Banco do Brasil, Citibank, BTG Pactual, ABC Brasil and Safra. The institutions requested interest of 136% on the Interbank Deposit Certificate (CDI), above the limit of 120% CDI in credit operations with a ten-year Union guarantee.
The decision was communicated on Monday (2) to the president of Correios, Emmanoel Rondon, in a meeting at the Ministry of Finance. With the disapproval, the Treasury will not be able to provide the Union’s guarantees, which would cover a possible default by Correios and practically eliminate the risk for financial institutions.
With the decision, the Post Office and banks, in theory, can negotiate a rate of up to 120% of the CDI. The state-owned company also has the option of waiting for a direct contribution from the National Treasury to partially cover the loss, which reaches R$6.05 billion from January to September this year.
Rate used in interbank credit (daily loans between banks), the CDI is slightly lower than the Selic Rate (basic interest in the economy). With the current Selic rate of 15% per year, a CDI of 136% would be equivalent to approximately 20% per year, while a loan of 120% of the CDI would be adjusted by approximately 18% per year.
Negotiations
In a statement issued to employees, Correios confirmed the loan’s disapproval and reported working to reorganize the company in partnership with several ministries.
“The Executive Board [dos Correios] continues to work, together with the ministries, on evaluating alternatives that reinforce the immediate liquidity of Correios, ensuring the progress of the initiatives necessary for the financial recovery of the state-owned company”, highlighted the text.
Restructuring
Since October, Correios negotiate with banks the loan of R$ 20 billion to help restructure the company. In exchange for the money, the state-owned company will have to fulfill a series of compensations to guarantee financial sustainability and the modernization of services.
Presented in November, the restructuring plan foresees a voluntary dismissal program and the closure of 1,000 branches and the sale of R$1.5 billion in properties. Under the plan, the R$20 billion loan would be used to pay off the state-owned company’s debt of R$1.8 billion, settle debts with suppliers, modernize the parcel service and find new sources of revenue.
