An auction scheduled for Monday aiming to sell operating rights to a savings bank owned by the Brazilian Post Office was canceled by the Communications Ministry. The auction was canceled due to lack of bidders. Under the proposed contract, a private financial institution would have won rights to manage deposits made by postal customers. The rights are currently held by the government-run Banco do Brasil. However, the government bank signaled its unwillingness to renew the contract, which expires this month. Financial market analysts said bidders were skeptical about the contract because of financial and management problems at the Post Office. Problems include huge debts in the postal system’s retirement fund.
Link to government news service reportMore Testimonials