By The Canadian Press
Canada Post signage and parked vehicles are seen at a Canada Post mail sorting facility in Ottawa, on Monday, Nov. 18, 2024. (THE CANADIAN PRESS/Spencer Colby)
The federal government is making more than $1 billion available to Canada Post in the form of a repayable loan to help the beleaguered Crown corporation remain solvent and keep its services running.
The $1.01 billion would be provided as needed and is described as a short-term financial bridge.
The new sum is in addition to $1.03 billion from Ottawa announced in January 2025.
“While Canada Post’s legislated mandate requires it to be financially self-sustaining, the corporation has accumulated significant losses in recent years, making clear that maintaining the status quo is not an option and that a clear plan is needed to restore long-term stability,” Public Services and Procurement Canada said in a statement on Thursday announcing the assistance.
In November, the Crown corporation said it would need another bailout in short order as the January 2025 amount that was expected to carry it through to the end of the fiscal year in March would be used up by the end of 2025.
At the time, Canada Post said it needed access to short-term financing for the next 12 months.
The federal government said the latest temporary support is to ensure service is maintained while the organization initiates reforms to make it viable long-term.
Canada Post said in an emailed statement on Saturday that it continues to deal with “significant financial challenges” and that it has submitted its proposed transformation plan to the federal government and is working to finalize it.
“The plan details the decisive action we are prepared to take to deliver the services Canadians need in a way that is financially sustainable,” Canada Post said.
