Brasília, August 20, 2003 (Agência Brasil - ABr) - A 2.5% reduction in the prime interest rate (Selic), from 24.5% to 22% per year, to be defined today by the Monetary Policy Committee (Copom), should save the government R$ 11.1 billion over the next 12 months, according to the economic consultancy firm, Global Invest,

According to chief economist Marcelo Ávila, this reduction in interest payments on the public debt represents the equivalent of 22.83% of what the government intends to save over the next 20 years as a result of social security reform. "Today's decision amounts to 4.5 years of the savings expected by the government through social security reform," Avila affirmed. (DAS)