Brasília, September 10, 2003 (Agência Brasil - ABr) - The Vice-President of the Republic, José Alencar, once again called for a reduction in interest rates. He took part in a ceremony at the National Confederation of Industries (CNI) to evaluate the year's balance in the Capital Markets Guide Plan, intended to strengthen and open the stock market, to attract more investments. "There is room for interest rates to fall," Alencar declared, with the observation that it is the Monetary Policy Committee (Copom) that decides this question.

In the vice-president's opinion, with a high interest rate, Brazil suffers difficulties in competing on foreign markets. In his view, "the country cannot continue burdened by this kind of capital costs, because it is impossible to resume development under these conditions." Alencar joined the chorus of speakers at the event, underlining interest rates, which currently stand at 22% per annum, as the greatest obstacle to the stock market.

The vice-president appealed for a national campaign to discover a solution for the high cost of capital in Brazil. He recalled that the interest rate in Brazil is often twenty times greater than in the ten biggest countries. Alencar made a point of of praising "the government's enormous effort, carried out with great competence, to prevent the return of inflation," but he said that "Brazil has to concern itself seriously with questions related to the cost of capital."

Alencar also told the entrepreneurs that President Luiz Inácio Lula da Silva has a high regard for the stock market and the capital market. "The President wants to do all he can for Brazil to have a strong capital market, to finance investments so that Brazil can compete more favorably on the world market." (DAS)