Correios are considering claiming government compensation for providing the universal postal service, which causes substantial losses. The state-owned company is negotiating a R$20 billion loan tied to a restructuring plan but faces resistance from the Lula administration. The issue will be mentioned generically in the plan without relying on future compensation revenues.
Brazil's Correios, the state-owned postal service responsible for mail and parcel delivery, are seeking financial compensation from the federal government for the constitutional obligation to provide universal postal service. This requirement demands the company's presence across the entire national territory, including unprofitable remote areas, accounting for a large portion of operational costs.
According to sources close to the discussions, the company is evaluating the creation of a universalization fee, charged on a to-be-defined base, but there is no finalized proposal yet. The issue will be addressed generically in the restructuring plan, crucial for approving the R$20 billion loan with public and private banks. However, the plan must demonstrate financial sustainability without relying on revenues from this compensation.
Universalization caused a R$4.82 billion loss in the first half of 2025, contributing to the total deficit of R$4.37 billion for the period. By September, the accumulated loss reached R$6.1 billion, tripling the R$2.14 billion from 2024, due to a 12.3% drop in gross revenue to R$12.8 billion – particularly in international postings, which fell from R$3.17 billion to R$1.13 billion – and a 6.9% rise in personnel costs to R$8.25 billion.
The restructuring includes measures such as a voluntary redundancy program (PDV), health plan reform, agency closures, and a new salary structure. The company is also studying private partnerships, joint ventures, and transferring properties to Emgea for quick sale, while maintaining Union control. Technicians highlight Correios' role in national logistics, such as transporting electronic ballots and Enem exam papers.
There is resistance within President Luiz Inácio Lula da Silva's (PT) government to the fee, fearing electoral backlash similar to the 'blusinhas tax' on international remittances up to US$50. The stock of precatórios rose to R$2.48 billion, pressuring cash flow. The Finance Ministry estimates a primary deficit of R$5.8 billion for Correios in 2025, impacting the fiscal target and forcing a R$3 billion cut in federal expenses.
Correios maintain about 10,000 service units, of which 7,000 are own or franchised agencies; 71% operate without profit to fulfill universalization. In a statement, the state-owned company said that 'in various countries, formal compensation mechanisms ensure universalization, recognized as an essential public service'.