Post Office May Default On Federal Loan Payments

The debt crisis grows deeper for the U.S. Postal Service (USPS). Soon after announcing aggressive cost cutting measures, the USPS said it might still default on loan payments it owes to the federal government due at the end of September 2011.

SAN FRANCISCO, CA - FEBRUARY 18: A U.S. Postal Service mail truck sits in a parking lot at a mail distribution center on February 18, 2015 in San Francisco, California. The Postal Service is looking to replace their aging fleet of mail delivery vehicles as their current trucks are becoming too small to meet the needs of their growing package delivery from large e-commerce vendors. Photo by Justin Sullivan/Getty Images

The debt crisis grows deeper for the U.S. Postal Service (USPS). Soon after announcing aggressive cost cutting measures, the USPS said it might still default on loan payments it owes to the federal government due at the end of September 2011.

Reporting a net loss of $3.1 billion for the third quarter of its 2011 fiscal year, the mail service projects a total loss of $8.3 by year’s end. While the USPS has reported several billions in losses for previous years, it has reached its borrowing limit as set by Congress, and can no longer extend the time to repay its debts.