Brasília, 27 (Agência Brasil - ABr) - Today minister of Finance, Pedro Malan, declared today that he expects a medium-term reduction tendency for the basic interest rate (Selic), which is presently at 18.75% annually. "We are laying the foundation to make this possible," said Malan, in testimony at the congressional Budget Committee.

In Malan's opinion, high interest rates are unsustainable over long periods of time. "They must come down and they will come down," he said.

Malan went on to say that the speed of the decline and its intensity would depend "on how much Brazil can demonstrate, not to the world, but to ourselves, ability to resolve its problems." (AB)