The Correios management intends to conclude the third round of negotiations with the banks on Thursday in an attempt to lower the interest rate on loans amounting to R$20 billion. The goal is to reach the conditions required by the National Treasury to guarantee the operation, with interest limited to 120% of the interbank Certificate of Deposit (CDI). If an agreement is reached, the plan is to submit a technical note with general outlines of the loan to the state-owned company’s board of directors by Friday.
Ministers of the Federal Court of Auditors (TCU) considered granting an injunction to limit interest to the rate used by the Treasury as a reference for credit operations guaranteed by the Union. The court opened an audit to monitor and supervise the $1 billion loan.
But on Tuesday, the Treasury warned Correos’ head, Emmanuel Rondon, that there was “no chance” of the Treasury relaxing the interest ceiling of 120% of the CDI, a benchmark in interbank credit operations, equivalent to 18% per annum.
In the last offer, banks BTG Pactual, Citibank, ABC Brasil, Banco do Brasil and Safra collected 136% of CDI – about 20% per annum – for the R$20 billion loan.
Correos is in a hurry and seeks to obtain at least R$10 billion by the end of this year to stop the bleeding and develop a restructuring plan aimed at ensuring the long-term sustainability of the operation, without relying on the union.
If negotiations do not progress, the alternative on the table is to bring together ministers involved in the issue to discuss other solutions for the company, such as a contribution from the National Treasury. It is likely that the matter will be referred to the Budget Implementation Council, to take a collective decision on the state-owned company crisis, or even an expanded meeting, with the participation of the Ministry of Communications, the department to which the state-owned company is linked.
The company’s management set the loan of R$20 billion as the amount needed to close the accounts by December 2027. The credit line stipulates the implementation of a recovery plan for the state-owned company that will be implemented within two years, with measures to reduce expenses and increase revenues.