Ottawa provides Canada Post with $1.01-billion loan to keep services running

The federal government will provide up to $1.01 billion in a repayable loan to Canada Post as a short-term financial bridge to maintain services; this follows $1.03 billion in support announced in January 2025.

The federal government is making up to $1.01 billion available to Canada Post as a repayable loan. The amount is described as a short-term financial bridge to help keep postal services operating. This support comes after $1.03 billion Ottawa announced in January 2025. Canada Post has reported significant losses and has submitted a proposed transformation plan to the government. Known details: - The loan is for up to $1.01 billion and will be provided as needed, characterized as temporary financing. - The new loan is additional to the $1.03-billion package announced in January 2025. - Public Services and Procurement Canada said Canada Post must restore long-term stability and that maintaining the status quo is not an option. - Canada Post said it continues to face significant financial challenges and has submitted a proposed transformation plan that it is working to finalize. - In November, Canada Post had said it would need further short-term financing as the January 2025 support would be used up by the end of 2025. Summary: The loan is intended to ensure postal services are maintained while Canada Post moves forward with a transformation plan. Details on the timing and implementation of reforms and the loan’s repayment are to be finalized.