18 May 2006
The Royal Mail has confirmed it is to receive a £1.75bn
package from the government to help plug its pension deficit and
pay for modernisation. About £900m will be in the form of a
loan with commercial rates of interest, which must be repaid by
2013.
The other £850m comes from existing Royal Mail reserves,
which it will be allowed to use to shore up a pensions deficit now
totalling £5.6bn.
