Ontario today launched the process to seek a buyer for the Province of Ontario Savings Office. The government announced its intention to seek a buyer for POSO in May 2001.

The sale process is expected to be complete by early next year. After the sale is completed, the 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 government of Ontario since 1922, POSO has 24 branches, plus four smaller agencies across the province, which provide limited banking services. POSO does not offer its clients services such as bank machines, 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 potential buyers have been qualified, they will be entitled to bid on the request for proposals, expected to be released in the fall.

Only regulated deposit taking institutions with deposit insurance coverage, licensed to accept retail deposits in Ontario and which have a corporate privacy code to ensure the 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.