Brasília, 11/20/2003 (Agência Brasil - ABr) - Vice president José Alencar has once again come out against Brazil's interest rates [the Monetary Policy Committee (Copom) just announced that the key rate in Brazil (known as the Selic) has been lowered to 17.5% annually]. According to Alencar, "A decision on the Selic is eminently political. That is why we have to convince the people in charge of this area politically. If we do not do that, we will pay so much interest that our debt will never stop growing." Alencar pointed out that even with a strong trade surplus, it has only been possible to cover 50% of the interest payments on the country's debt.

Alencar declared that a reasonable rate, in international terms, would be a real interest rate of 3% [Selic minus inflation]. According to Alencar, that would just be "starters." He quickly pointed out that even at 3% Brazilian interest rates would be higher than it is in 20 other countries. "What I want to know is why we have to pay such unreasonable interest rates," said the vice president. (AB)