The U.S. postal service could face «catastrophic» losses due to coronavirus

Neither snow, nor rain, nor heat, nor gloom of night can stop the mail, but the coronavirus can.

Among the many organizations that coronavirus drove in a hopeless situation, turned out to be and the U.S. Postal service, which under the worst scenario may be faced with «insufficient liquidity to continue the work.»

According to NPR, a member of the U.S. house of representatives Gerry Connolly fears a «catastrophic» losses of the Postal service up to 60% by year-end.

«Many companies have stopped sending ads in the mail,» said Connolly.

This has led to the reduction of the work of the organization that reportedly lost $8.8 billion last fiscal year, when the economy was more stable.

A law passed by Congress last month, includes a loan of $10 billion for the United States Postal service, but the increase in debt is not what she needs, as stated by Connolly, representative of the democratic party of Virginia. «She needs the forgiveness of debt, not increase it,» said Connolly. «And she needs an immediate infusion of capital.»

A Union representative American Postal Workers Union told NPR that while people sit in quarantine, relying on medications and medical information, mail service is important during a pandemic as ever. Under normal circumstances, through the Postal service are 1.2 billion of drugs each year, including almost all deliveries for the Ministry of veterans Affairs of the United States.

Connolly fears the beginning of big problems with the Postal service in June, if Congress does not forgive its debts and provide a $25 billion aid. He noted that Congress has already agreed to provide twice that amount to airlines.

The representative of the United States Postal service David Partenheimer said that the concerns of postal workers are without Foundation. «The postal service appreciates the loans during the period of the pandemic COVID-19. However, the U.S. Postal service is worried that this measure will not be sufficient to allow the Postal service to survive in a significant reduction in activity, which may be a direct consequence of the pandemic,» he said. «The worst case scenario, this reduction in activity can lead to the fact that the Postal service will have insufficient liquidity to continue the work.»

Source