Correios suspends loan of R$20 billion due to high interest rates

Correios suspended the process of contracting a loan of around R$20 billion with a group of banks due to high costs, a source from the Ministry of Finance told Reuters this Tuesday.

The suspension was reported earlier by the newspaper Folha de S.Paulo.

The National Treasury would not guarantee a loan above the interest rate it establishes as a limit for operations of this type, said the source.

In October, Correios announced negotiations for a R$20 billion loan guaranteed by the Treasury, as the company seeks to strengthen its short-term financial liquidity.

Correios’ “very bad” result affected the government’s budget planning for this year and could be even worse in 2026, a government official said last month.