MercoPress. South Atlantic News Agency

Lula defends orthodox economic policies.

Brazilian president Luiz Inacio Lula da Silva defended his administration's economic policies that have come under strong attack from groups in his own Workers Party, particularly criticizing the working of the financial system.

"What we are doing is putting the financial system, especially government managed banks, to work for the people, for the Brazilian community, for the development of the country", said president Lula da Silva during his radio program "Share a coffee with the president".

Last Sunday fifteen "radical" Deputies from the Workers Party gathered in Sao Paulo demanding changes to the administration's economic policies, more specifically an end to inflationary targets and lowering interest rates.

"I'm cool because with the government funds for investments we've achieved more than was ever done in the last ten years in our dear Brazil", insisted Mr. Lula da Silva looking back to his first year in office.

"Last year, the Bank of Brazil lent more money than ever to small businesses and a million poor people, who never before had walked into a bank, had access and now have current accounts".

"This real radical change of policy is having government managed banks working for the people; facilitating credit to small businesses is our goal and we shall continue easy going as we have done so far".

Mr. Lula da Silva also talked about the "Northeast growth" plan, a billon US dollars program to help develop the northeast of the country, the poorest and most backward of the country. The target of the plan is to help develop small enterprises in agriculture, commerce, services, fish farming, etc.

In related news and with the coming October municipal elections on the horizon, the opposition to the Lula da Silva administration has began organizing with the return to the country of two times president Fernando Henrique Cardoso (1994-2002).

The former president held over the weekend a first meeting with leaders of his Social Democrat party and the Liberal Front, and this week is scheduled a second gathering but in Congress with the purpose of uniting the opposition to the ruling Workers Party.

The main speaker will be several times governor of Rio do Janeiro and Rio Grande do Sul, Leonel Brizola who has been a permanent critic of Mr. Lula da Silva's policies.

"The president will have to explain why he swept away with 650,000 jobs, why unemployment in Sao Paulo is record, why taxes have rocketed and interest rates are so high", anticipated Mr. Brizola.

Liberal Front leader Jorge Bornhausen highlighted that the Workers Party destroyed their man banner, ethics, in direct reference to bribery scandals involving some of the closest aides of President Lula da Silva.