The government bills drafted to privatize the state-run postal services were finally enacted into laws in mid-October, but there will be two major challenges ahead as privatization is carried out.
One is the how to reorganize, abolish or privatize government-affiliated financial institutions that have been reliant on postal savings for their funding. The other is how to make sure the post office can compete with private-sector banks on a level playing field during the transition to full privatization.
The first challenge concerns the "exit phase" of postal reform -- how postal savings deposits will be managed -- now that reform of the "entry" phase -- how money will be raised -- has been approved by the decision to privatize.