Original Language Title: RESOLU

Read the untranslated law here:

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Do I know that the Senate

Federal approved, and I, Renan Calheiros, President, pursuant to art. 48,

paragraph XXVIII, the internal regulations, enact the following resolution No. 1 of 2006 Authorizes the Federative Republic of Brazil

hiring external credit operation for a total value of up to $

658.300, 000.00 ($ 658,300,000

Americans) with the International Bank for reconstruction and


The Federal Senate

resolves: Art. first is the Republic

Brazil's Federative authorized to hire external credit operation

total value of up to $658,300, 000.00 (658 million and

300,000 u.s. dollars), with the International Bank for

Reconstruction and development-Ibrd.

Sole paragraph. The

features of credit operation constitute the first loan

Reforms in the programmatic Social Security Tax-III.

Art. 2 the conditions

basic financial credit operation are as follows: I-borrower: Republic

Federal Republic of Brazil;

II-creditor: Bank

For reconstruction and development-Ibrd;

III-total value: up

$658,300, 000.00 (658,300,000

u.s. dollars);

IV-mode of

loan: fixed margin loan (fixed spread loan??), with

Automatic interest rate, as realisation of the disbursements, and rate of

possibility of: a) currency conversion;

b) conversion rate of

floating to fixed interest or vice versa;

c) establishing

ceilings and bands to interest rate fluctuation;


disbursement: up to 31 December 2006;

I saw grace period: 5

(5) years;

VII-depreciation: 24

(twenty-four) consecutive semi-annual installments, the first in 15

July 2010 and the last in January 2022 15;

VIII-interest: required

semi-annually on January 15 and July 15 of each year, calculated on the

periodic balance due on the loan, a compound annual rate of? LIBOR-6

months? and? spread? up to 0.75% p.a. (75 cents for 100 to


IX-Commission of

commitment: required semi-annually, at the same payment dates, interest, and

calculated based on the rate of up to 0.85% p.a. (85 cents for

100 year) about the non-disbursed loan balance, entering into force

60 (60) days after signature of the contract, the rate of up to 0.85%

(85 cents per 100) will focus to the 4th (fourth) year of your

entry into force; After this period, the maximum rate will be 0.75% p.a. (70

and five hundredths by 100 per year);


up to 1% (1%) about the value of the loan, to be debited on the date on

the contract come into effectiveness.

Sole paragraph. The

main payment dates and financial burdens, provided for in the draft

contract can be changed on the basis of the date of your signature.

Art. 3 the authorisation

granted by this resolution must be exercised within 540 (500 and

40) days, counted of the date of your publication.

Art. 4 this resolution

shall enter into force on the date of your publication.

Senate, on 25 January 2006.

Senator Renan

Calheiros Federal Senate President