Lula government considers smaller contribution to Correios in Budget proposal for 2027

The Executive could supplement the amount throughout 2027, by blocking other areas, without incurring a breach of contract. But the idea faces resistance within the government itself, precisely because of the contractual requirement.

Technicians consider it a mistake not to include the figure in the budget forecasts now, as it would be like underestimating an expense that the Executive cannot avoid. On the other hand, a reduced amount would free the government from proposing now, in the midst of the electoral campaign, more drastic cuts in other areas to pave the way for contributions. Two members of the government confirmed to Folha that the discussion about the amount exists and the possibility of a smaller amount is on the table, but the hammer has not yet been struck. A definition on the topic should only happen next month, close to the date of sending the PLOA (annual budget bill) to Congress, until August 31st.

The contribution clause was a request from the five banks that granted the loan to Correios: Banco do Brasil, Caixa Econômica Federal, Bradesco, Itaú and Santander. At the time, the Ministry of Finance had to enter the field to ensure that the operation was closed.

To convey confidence in the company's future balance and in its ability to honor the loan installments, the Treasury suggested the possibility of injecting Union resources into the company's cash flow until the end of 2027. The institutions then demanded the formalization of the promise in a contractual clause.

In the contract, obtained by Folha, the Union committed to honoring the early maturity of the debt in the event of "the absence of a contribution from the Union to Correios of the amounts necessary for the proper execution of the rebalancing plan in at least R$6,000,000,000.00 (six billion reais), between the years 2026 and 2027, in accordance with current legislation".

The term "early maturity" in the contract means that, if this requirement is not met, the Union will need to honor the payment of all R$12 billion contracted, plus charges already incurred, in a single payment.

Until now, the government has not foreseen any contribution amount in 2026. If this scenario were maintained, only 2027 would be left to fulfill the transfer required by the contract.

The capitalization of non-dependent state-owned companies, such as Correios, remains within the spending limit of the fiscal framework and the primary result target (obtained by the difference between revenues and expenses). Therefore, accommodating expenditure in the PLOA requires cuts in other areas.

People linked to the government and the company do not believe that there will be an acceleration in collections and are betting on the full contribution of the planned resources. However, they recognize that predicting a lower value in the 2027 PLOA is not the ideal scenario.

When contacted, the Ministry of Finance said that "the information will be disclosed when the proposal is forwarded to the Legislature". Planning was contacted through its advisory services on Friday afternoon (17), but did not respond until the publication of this text.

The discussion occurs at a time when Correios is negotiating a second loan, worth R$7 billion, to continue implementing the company's restructuring plan.

As Folha showed, only private institutions should participate in the new funding, unlike the first round, when public banks led the negotiations at the request of the Lula government.

According to people who follow the negotiations, Citibank and Deutsche Bank are among the institutions participating in the talks and are expected to be part of the syndicate of banks that will grant the new loan. When contacted, Citi did not respond, and Deutsche Bank stated that it does not comment on the matter.

Public records show that, on June 17, members of Correios' financial area met with representatives of the two banks, as well as members of J.P. Morgan and ABC Brasil. The commitment was described as a meeting between "Correios and the Banks Union", whose theme was the "review of some conditions presented in the loan proposal".

J.P. Morgan was contacted by email on Friday afternoon, but did not respond. The ABC said it did not comment on specific cases.

The Secretary of the National Treasury, Daniel Leal, also maintained negotiations with other foreign banks, including representatives from BofA (Bank of America), BNP Paribas and Bank of China. Emissaries from the last two also met with the president of Correios, Emmanoel Rondon, until the beginning of June, according to public records.

BofA and BNP Paribas declined to comment. Bank of China did not respond.

According to a participant in the discussions, the loan should be at the R$ 7 billion already foreseen, but the banks will enter with different amounts - in other words, the division will not be equal.

In the first operation, there were also differences in the "check size": BB, Caixa and Bradesco lent R$3 billion each, and Itaú and Santander, R$1.5 billion each.

The cost of the new operation will need to respect the maximum cost table for credits guaranteed by the National Treasury, which limits banks' remuneration to 120% of the CDI (Interbank Deposit Certificate). The structure must be similar to the first loan, which had a total term of 15 years and a grace period of three years until installment payments begin.

The resources from the new credit need to enter the account in 2026, so that the company can keep its commitments up to date. But the situation is more comfortable than last year. The frustration of the PDV (voluntary dismissal program) goals, although negative, ended up helping to keep more resources in cash, since the payment of incentives was lower than expected in