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Home > Diamond News Center > Diamond News > Financial News

U.S. Postal Service Close to Default

31.07.12, 14:42 / Financial News
The United States Postal Service is preparing to default on its payments to the country's treasury for the first time in its history, Business Insider reported. A number of multi-billion-dollar payments are due in the days and months to come, and the Postal Service does not have enough cash to pay these.
 
Even if the Postal Service defaults, daily mail service is expected to continue and employees will continue to be paid for their work. Postmaster General Patrick Donahoe fears that loyal customers may decide to abandon the USPS in favor of other services, however. The volume of first-class mail in the U.S. has dropped by a quarter in the last six years, and it is expected to drop by another third in the next four.
 
The first payment that may be defaulted on, due Wednesday, is a $5.5 billion bill that ensures that postal workers will have health benefits even if they retire in the future, according to Business Insider.

 
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