Ontario began the search today for a buyer for the Province of Ontario Savings Office. The province had announced its intention to sell the POSO in May 2001.

The sale is expected to be complete by early next year. After the sale, the provincial government will continue to guarantee payment of all short-term deposits and guaranteed investment certificates that were purchased before the sale date, until their maturity.

“This process is part of our effort to improve the delivery of services to taxpayers,” said Finance Minister Janet Ecker in a news release. “We are following through with our budget commitments and exploring private sector participation to deliver programs more effectively.”

Operated by the Ontario government since 1922, POSO has 24 branches, plus four smaller agencies across the province, which provide limited banking services. POSO does not offer credit cards, consumer and business loans, mortgages, registered retirement savings plans or mutual funds.

Potential buyers will be qualified to bid through the Request for Expressions of Interest process. Once qualified, potential buyers will be entitled to respond to the request for proposals, expected in the fall.

Only regulated deposit taking institutions licensed to accept retail deposits in Ontario and with deposit insurance and privacy codes to ensure appropriate handling of personal information will be qualified to bid.

For three years following the sale, hours of operation and services and products offered will be maintained. The buyer will be required to maintain a physical presence in all communities currently served by POSO.