I make it known that the FEDERAL SENATE has approved, and I, ANTONIO CARLOS MAGALHÃES, PRESIDENT, in the terms of art. 48, item 28, of the Rules of Procedure, promulgated the following

resolution No. 8, 2000.

Authorizes the Brazilian Company of Post and Telemegraphs-ECT to temporarily raise its borrowing limits and to hire two external credit operations, the first being with Kreditanstalt für Wiederaufbau-KfW, in value equivalent to up to DM 121,515,493.00 (one hundred and one million, five hundred and fifteen thousand, four hundred and ninety-three German landmarks), and the second with the Société Genérale-Sogeral Bank, in the value of up to EURO 53,766,839.00 (fifty- three million, seven hundred and sixty-six thousand, eight hundred and thirty-nine euros), both intended for the partial funding of the Postal-Paste Object Triage System Automation Project.

The FEDERAL SENATE resolves:

Art. 1º It is the Brazilian Company of Post and Telegraph-ECT authorized, pursuant to Resolution No. 96 of 1989, reinstated by Resolution No. 17 of 1992, both of the Federal Senate, to temporarily raise its borrowing limits and to hire external credit operations with the Kreditanstalt für Wiederaufbau-KfW, in the value equivalent to DM 121,515,493.00 (one hundred and one million, five hundred and fifteen thousand, four hundred and ninety-three German landmarks) and with the Société Genérale-Bank Sogeneral, at the equivalent value to EURO 53,766,836.00 (fifty and three million, seven hundred and sixty-six thousand, eight hundred and thirty-nine euros).

Single Paragraph. The resources obtained with the external credit operations authorized in the form of this Resolution are intended for the partial financing of the Postal-Paste Object Triage System Automation Project.

Art. 2º The external credit operations referred to in art. 1º present the following characteristics:

I-borrower: Brazilian Company of Post and Telemegraphs-ECT ;

II-guarantor: Banco do Brasil S.A.;

III-1º Mutuante: Kreditanstalt für Wiederaufbau-KfW:

a) total value: equivalent to up to DM 121,515,493.00 (one hundred and one million, five hundred and fifteen thousand, four hundred and ninety and three German landmarks) ;

b) conditions for 85% (eighty-five per cent) of the operation:

1) value: equivalent to up to DM 103,288,169.00 (one hundred and three million, two hundred and eighty-eight thousand, one hundred and sixty-nine German landmarks), in three instalments ;

2) interest: CIRR-DM-based rate (CommercialInterestReferenceRate) to be fixed at the contract signing date, vigorously for the entire period of the loan, and incidents on the disbursed value, the from the first disbursement ;

3) deadline: ten years ;

4) deficiency: six months after the disbursement of each credit opening ;

5) commission of engagement: 0.375% a.a. (three hundred and seventy-five thousandths per cent a year), paid quarterly on the non-disbursed balance of the loan ;

6) management commission: 0.25% (twenty-five hundredths per cent) of the loan amount, payable sixty days after the signing of the Financing Contract ;

7) general expenses: limited to 0.1% (one tenth per cent) of the value of the financing, payable after proper proof ;

8) deadline of disbursement: one hundred and fifty months, counted from the signing of the Financing Contract ;

9) payment conditions:

-of the main: twenty semestral plots equal and consecutive, being the first six months after the issuance of the Entry Certificate in Operation of each Triage Centre, or, at the latest, twenty-two, twenty-five, and thirty months for each plot ;

-interest: during the grace period, on June 30 and December 30 of each year ; and during the period of amortization of the principal, together with the respective plots ;

-of the commission of appointment: quarterly ;

c) conditions for 15% (fifteen per cent) of the value of the operation:

1) value: equivalent to up to DM 18,227,324.00 (eighteen million, two hundred and twenty-seven thousand, three hundred and twenty-four German landmarks) ;

2) interest: rate to be established by the KfW based on the most margin cost of 2.25% a.a. (two integers and twenty-five hundredths per cent a year), fixed in disbursement and effective for the entire period of the loan. In the case of more than one disbursement, weighted average of the rixed rates can be made at each disbursement ;

3) deadline: five years ;

4) deficiency: thirty months from the signing of the Financing Contract ;

5) commission of appointment: 0.25% (twenty-five hundredths per cent a year), paid quarterly on the non-disbursed balance of the loan ;

6) management commission: 1.0% (one per cent) of the amount of the payable loan sixty days after the signing of the Financing Contract ;

7) general expenses: limited to 0.1% (one tenth per cent) of the value of the financing, payable after proper proof ;

8) disbursement deadline: ninety months, counted from the signing of the Financing Contract ;

9) payment conditions:

-of the principal: ten equal and consecutive semi-annual installments, the first thirty months after the signing of the Financing Agreement ;

-of interest: during the grace period, on June 30 and December 30 of each year ; and during the period of amortization of the principal, together with the respective parcels ;

-of the commission of appointment: quarterly ;

IV-2º Lender: SociétéGenérale -General Bank:

a) total value: equivalent to up to EURO 53,766,839.00 (fifty and three million, seven hundred and sixty-six thousand, eight hundred and thirty-nine euros) ;

b) conditions for 85% (eighty-five per cent) of the value of the foreign plot, the total value of the local part and the total value of the credit insurance premium:

1) value: equivalent to up to EURO 47,469,772.00 (forty-seven million, four hundred and sixty-nine thousand, seven hundred and seventy and two euros) ;

2) interest: CIRR-EUR-based rate (CommercialInterestReferenceRate) to be fixed at the signing date of the Contract, vigorously for the entire period of the loan and incident on the disbursed value of the loan, from the first disbursement ;

3) deadline: ten years ;

4) deficiency: six months after the disbursement of each credit opening ;

5) commission of engagement: 0.5% a.a. (five tenths per cent a year), paid at the end of the semester, calculated on the non-disbursed balance of the loan at the beginning of the semester ;

6) management commission: 0.5% (five tenths per cent) of the amount of the loan, payable thirty days after the signing of the Financing Agreement ;

7) general expenses: limited to 0.1% (one tenth per cent) of the value of the financing, payable after proper proof ;

8) deadline of disbursement: one hundred and forty-one months, counted from the signing of the Financing Contract ;

9) payment conditions:

-of the main: twenty semestral installments equal and consecutive, being the first six months after the end of the semester period, regrading in that period the issuance dates of the Entry Certificate in Operation of each Triage Centre, or twenty-one months after the signing of the Financing Contract ;

-of interest: during the grace period, paid on date that incited at half-yearly intervals counted behind the date of the commencement of amortization ; and during the amortization period of the principal together with the respective parcels ;

-of the commission of engagement: semester ;

c) conditions for 15% (fifteen per cent) of the value of the foreign plot:

1) value: equivalent to up to EURO 6,297,067.00 (six million, two hundred and ninety and seven thousand, sixty-seven euros) ;

2) interest: EUR-BOR rate of six months, plus margin of 3.75% a.a. (three integers and seventy five hundredths per cent a year) ;

3) deadline: five years ;

4) deficiency: thirty months from the signing of the Financing Contract ;

5) commission of engagement: 0.5% a.a. (five tenths per cent a year), payable semiannual on the non-disbursed balance of the loan at the beginning of the semester ;

6) management commission: 1.0% (one per cent) of the amount of the loan, payable thirty days after the signing of the Financing Agreement ;

7) general expenses: limited to 0.1% (one tenth per cent) of the value of the financing, payable after proper proof ;

8) agent commission: EURO 8,000.00 (eight thousand euros) annual, being the first instalment thirty days after the signing of the Financing Contract and the following, annually on the same date ;

9) deadline of disbursement: ninety months, counted from the signing of the Financing Agreement ;

10) payment conditions:

-of the principal: ten equal and consecutive semi-annual installments, the first thirty months after the signing of the Financing Agreement ;

-of interest: during the grace period, in the semi-annual period counted from the signing of the Contract ; and during the period of amortization of the principal, together with the respective parcels ;

-of the commission of engagement: semester.

Single Paragraph. The payment dates of the principal and charges may be changed depending on the date of the Contract signing.

Art. 3º The authorisation granted by this Resolution should be exercised within five hundred and forty days, counted from the date of its publication.

Art. 4º This Resolution shall enter into force on the date of its publication.

FEDERAL SENATE, on February 9, 2000.

Senator antonio carlos magalhães

PRESIDENT