US Postal Service to Default on Two Repayments to Treasury

By Scott Sarvay
By Maureen Mespell

August 1, 2012 Updated Aug 1, 2012 at 9:25 PM EDT

UNDATED (Indiana’s NewsCenter) - The United States Postal Service is still hemorrhaging money to the tune of $25 million a-day. Now, it's bracing for its first default in payments to the Treasury.

The Postal Service will not make two legally required payments to future retiree health benefits.

$5.5 billion is due on Wednesday and an additional $5.6 billion is due in September.

The defaults won't impact day to day operations. Which means post office locations will remain open, mail trucks will run, and employees will continue to get paid.

But analysts warn of longer-term harm, as the mail agency finds itself increasingly preoccupied with staving off bankruptcy.




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