The Canadian federal government has allocated over $1 billion in the form of a repayable loan to support Canada Post, aiming to sustain the troubled Crown corporation and uphold its operations. This $1.01 billion funding will be accessible as required and is labeled as a short-term financial lifeline. In addition to the recently announced $1.03 billion in January 2025, this new amount is part of the ongoing efforts to stabilize Canada Post’s financial situation.
Public Services and Procurement Canada stated that despite Canada Post’s obligation to be financially self-sustaining, the corporation has faced significant losses in recent years, emphasizing the necessity for a clear strategy to ensure long-term stability. In response to the corporation’s request for additional financial assistance, the government has provided this temporary support to enable Canada Post to continue its services while implementing reforms for future sustainability.
Canada Post confirmed the existence of substantial financial challenges and mentioned that it has presented a transformation plan to the government for review and finalization. The corporation expressed its commitment to taking decisive actions outlined in the plan to deliver essential services to Canadians in a financially sound manner.
