WASHINGTON (CNNMoney) — The Postal Service is facing such a cash crunch that it has a $12.1 billion loan outstanding from Treasury.
But taxpayers will be paid back, especially after Congress acts to help save the Postal Service, according to most experts.
The U.S. Postal Service is facing a dire financial crisis, but it is not alone. The postal services of other nations also have felt the impact of electronic communications and private sector competition, and have been undergoing significant transformations.
Germany and the Netherlands have embraced privatization. Great Britain is moving slowly in that direction with its Royal Mail. The postal services in Australia and Canada have no Saturday delivery, and other countries are reaching the inevitable conclusion that mail service has to change. Keep reading →
The Postal Service presented a proposal to Congress on Tuesday that might stave off financial collapse but would have far-reaching ramifications for federal workers.
Postal officials say they will be unable to make this month’s $5.5 billion payment to cover future employee health care costs because the agency will have reached its borrowing limit and doesn’t have enough cash. The Postal Service has proposed ending Saturday mail delivery and is considering cutting as many as 120,000 jobs as it faces a second straight year of losses of $8 billion or more. A decline in mail because of the Internet and the loss of revenue from advertising amid the economic downturn have taken a toll on the agency. Keep reading →