Do I know that the Senate approved, and I, Jose Sarney, President, pursuant to art. 48, paragraph XXVIII, the internal regulations, enact the following R E S O L U t I O N° 8, 2011 Authorizes the city of Paranaguá, in the State of Paraná, to hire external credit operation, with guarantee of the Federative Republic of Brazil, worth up to $ 16,649,600.00 (sixteen million, us $ 649,600).
The Senate resolves: Art. first is the city of Paranaguá, in the State of Paraná, authorized to hire external credit operation, with guarantee of the Union, with the Inter-American Development Bank (IDB), worth up to $ 16,649,600.00 (sixteen million, us $ 649,600).
Sole paragraph. The resources from the operation are intended to finance the "integrated programme of Social and Urban Development of the city of Paranaguá-Paranaguá Course" under the Procidades Program.
Art. 2 the credit operation referred to in art. 1 shall be performed under the following conditions: (I)-debtor: City of Paranaguá, in the State of Paraná;
II-creditor: Inter-American Development Bank (IDB);
III-guarantor: Federative Republic of Brazil;
IV-value: up to $ 16,649,600.00 (sixteen million, us $ 649,600);
V-mode: unimonetário engine, loan with interest rate based on the interbank rate practised in London (Libor);
VI-disbursement period: 5 (five) years from the period of the contract;
VII-conversion options: the borrower can exercise the option of converting the currency disbursements and/or the currency conversion of the balances;
VIII-amortization of debt balance in u.s. dollars: consecutive semi-annual installments, as far as possible equal values, paid on 15 April and 15 October each year, winning the first 5 (five) years after the date of signature of the contract and the last until 25 (twenty-five) years later this same date;
IX-amortization of debt balance in reais: will be established for each converted to actual disbursement, and the conditions offered by the IDB to the borrower are the constants of the "Indicative Listing of conversion of Disbursements to the Borrower" and "Letter of notification of Disbursement conversion";
X-applicable interest for balance due in u.s. dollars: required semi-annually on the same dates of payment and amortization calculated on the outstanding balance of the loan to a regular annual fee for each quarter given by the IDB and composed by quarterly Libor for USD, more or less a related cost margin loans that finance the loans unimonetário engine with Libor-based interest rate , and more scope for loans from ordinary capital;
XI-interest applicable to outstanding balance in real: in the case of currency conversion, the IDB will indicate, by means of a letter of formal notice, the base interest rate, which means the interest rate equivalent in reais (BRL) market, the sum of: (i) the USD Libor rate (Libor for USD) to 3 (three) months, plus (ii) 10 pbs (10 basis points). The base interest rate will be determined for each function (i) conversion of the fixed interest rate applied to a nominal amount fixed by inflation; (ii) the schedule of payments; (iii) the date of conversion; and (iv) of the nominal amount of each conversion;
XII-option of fixing the interest rate: the borrower may, with the consent of the warrantor, request the IDB the conversion to a fixed interest rate of part or all of the debt balances subject to interest rate based on Libor and a new cast of part or all of the debt balances of Loan calculated at a fixed interest rate for Libor-based interest rate the time limits and minimum amounts required for conversions are set forth in the loan agreement and the costs of carrying out the conversion options will be passed along by the IDB to the borrower;
XIII-commitment: to be established periodically by the IDB, and cannot exceed the 0.75% (75 cents per 100) of the balance not paid required funding together with interest and entering into force 60 (60) days after the signing of the contract;
XIV-general inspection and supervision expenditure: in a given semester, exceed 1% (1%) of funding, divided by the number of semesters understood within original disbursement schedule.
Sole paragraph. The dates of payment of the principal, the financial charges and disbursements referred to can be changed depending on the date of signature of the loan contract.
Art. third is the Union authorized to grant a guarantee to the city of Paranaguá, in the State of Paraná, in the operation of external credit referred to in this resolution.
Sole paragraph. The authorization referred to in the caput is conditional: I-the city of Paranaguá, in the State of Paraná, celebrate with the Union contract for the provision of counter-guarantees in the form of linking revenue sharing quotas of dealing with the arts. 158 and 159, complemented by tax revenue set out in art. 156, according to the art. 167, paragraph 4, of the Constitution, and all other warranties in law permitted the Federal Government to withhold the transfer of resources to cover the commitments honored directly towards centralization of the accounts of the Municipality or of the federal transfers;
II-to be proven that the conditions prior to the first disbursement;
III-what is verified to the defaulting again between guaranteed by the Union and its subsidiaries.
Art. 4 the maximum time limit for the exercise of this authorization shall not exceed 540 (540) days, counted from the validity of this resolution.
Art. 5 this decision shall enter into force on the date of its publication.
Senate, on 8 July 2011.
Senator JOSÉ SARNEY, President of the Senate