Postal Service Headed for Insolvency

YERUSHALAYIM -

The Israeli postal system could be insolvent by the third quarter of this year, according to an internal government document obtained by The Marker, prepared by the Communications Ministry, which is responsible for the operations of the postal bank.

Oren Levian, a senior official at the Communications Ministry who authored the report, criticized postal authorities for an overly optimistic forecast.

“The [postal] company is managing to create a positive cash flow from its ongoing operations,” Levian noted, “but [they are] substantially lower than the same period in September 2012. An analysis of trends from the [financial] reports reveals that there is material concern over substantial cash-flow difficulties in the course of its ongoing operations already in 2014, including a transition to a gross loss in the first quarter of 2015.”

The postal company’s CEO, Haim Almoznino, said in a written response that the company has 60 million shekels ($17.2 million) on deposit at Bank Yahav that will enable it to finish the year, and other assets.