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Banco do Brasil to bear security-related expenses at Banco Postal for 4 months

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Banco do Brasil to bear security-related expenses at Banco Postal for 4 months

Banco do Brasil SA will shoulder security-related expenses of Banco Postal for four months to ensure the latter's operation in 1,827 post offices across Brazil, Valor Econômico reported.

The expenses, which will cover the hiring of armed guards and some maintenance costs, could reach 8 million Brazilian reais per month.

Through a contract, Banco do Brasil will incur the costs that should have been assumed by Correios, the operator of Brazil's national postal service. Correios said it would no longer provide Banco Postal services in the country's post offices due to a lack of resources.

Banco do Brasil will finance the Banco Postal expenses until end-January, according to Gilberto Kassab, the minister of science, technology, innovation and communications, or MCTIC. After that period, MCTIC will find another solution to maintain the services of Banco Postal.

In December 2016, Banco do Brasil signed an agreement to continue distributing its products and services through Brazilian postal service Correios' network for another 36 months.

As of Oct. 3, US$1 was equivalent to 3.15 Brazilian reais.