São Paulo, June 17, 2003 (Agência Brasil - ABr) - During a speech today to businessmen in São Paulo, Vice-President José Alencar underscored that everything he has said is in Brazil's favor. In recent criticisms of the country's high interest rates, the Vice-President went so far as to classify them as "a holdup," when compared with other countries' interest rates. Alencar said he does not need to prove he is an ally of President Lula, and he said that it is difficult "to make an investment with interest rates at 26.5%, which corresponds to what it takes a firm three years to earn back," he declared.

He cited China, which has been adopting very low interest rates, at times lower than those in the United States. He cautioned that the Chinese are acting with greater intelligence and are achieving 8-9% annual growth. And he warned that Brazil needs to wake up. (DAS)