The federal government is lending Canada Post $1 billion for the fiscal year 2025-26 to manage ongoing financial difficulties. While the funds comply with the Canada Post Corporation Act, they merely provide a temporary solution without addressing the postal service's structural issues. Canada Post reports a loss of $3 billion since 2018, attributed to declining letter mail and competition in the parcel market. It warns of a financial crisis by mid-2025 if further borrowing isn't secured, emphasizing the need for a sustainable operational plan.
The federal government will lend $1 billion to Canada Post for the 2025-26 fiscal year to address significant financial challenges, but this is only a temporary aid.
Canada Post has lost $3 billion since 2018, mainly due to declining letter mail and competition in the parcel market.
The postal service is working on a plan with the government to secure long-term viability, as it has warned of running out of funds by mid-2025.
Canada Post confirmed that the funds provided by Ottawa, while helpful, will not resolve the Crown corporation's underlying structural issues.
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