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 # 60, DE 2000.

Authorizes the State of Rio Grande do Sul to hire external credit operation worth up to US$ 75, 000, 000.00 (seventy-five million US dollars), from principal, along with Japan Bank for International Cooperation (JBIC), with the guarantee of the Federative Republic of Brazil, intended for the partial funding of the State Transportation Sweepers Program of the State of Rio Grande do Sul.

The FEDERAL SENATE

resolves:

Art. 1º It is the State of Rio Grande of the South authorized to hire external credit operation together with the Japan Bank for International Cooperation -JBIC, with the guarantee of the Federative Republic of Brazil, at the equivalent of up to US$ 75, 000, 000.00 (seventing and five million U.S. dollars), from principal.

Single Paragraph. The proceeds from the credit operation referred to in the caput are intended for the partial funding of the State Transportation Sweepers Program of Rio Grande do Sul.

Art. 2º The Federative Republic of Brazil is authorized to provide warranty to the authorized operation in art. 1º.

Art. 3º The basic financial conditions of the operation of credito are as follows:

I-dever: State of Rio Grande do Sul ;

II-credor: Japan Bank for International Cooperation -JBIC ;

III-total value: US$ 75, 000, 000.00 (seventy-five million U.S. dollars) ;

IV-interest: annual interest rate to be fixed on the basis of Japan Long-Term Prime Rate in force on the date of each disbursement, incident on the principal balance debtor, as of the date of each disbursement of the resources abroad ; case such a fee is less than the Fiscal Investment Program Rate and Increased Loans of 0 ,2%a.a. (two tenths per cent a year) on such disbursement will be fixed a fee based on the Fiscal Program Rate of Investments and Loans plus 0.2 %.a.(two tenths per cent a year) ;

V-term: approximately nineteen years (two hundred and twenty-eight months) ;

VI-caress: approximately four years and six months (fifty-four months) ;

VII-appointment commission: up to 0.25% (twenty-five hundredths per cent) on the non-disbursed amount, counted from the date of signing of the contract ;

VIII-deadline for disbursement ; termination on October 10, 2002 ;

IX-general expenses: the reasonable ones, limited to ¥ 6,000,000.00 (six million yen) ;

X-interest arrears: up to 1.0% a.a. (one per cent a year) above the operating rate:

XI-payment conditions:

a) of the principal: in equal, semi-annual and consecutive plots, winning the first on January 10, 2003, however not before the last disbursement, and the last on July 10, 2017 ;

b) of interest: semiannually accrued, payable on January 10 and July 10 ;

c) of the compromise commission: semistically won, being the first instalment after the issuance of the Certificate of Authorization, on January 10 and July 10 ;

d) of general expenses: after the issuance of the Certificate of Registration, upon voucher, in real, except those incurred abroad which can only be paid in foreign currency.

Single Paragraph. Payment dates can be changed depending on the Contract's signature date.

Art. 4º The authorisation granted by this Resolution should be exercised within five hundred and forty days, counted from the date of its publication.

Art. 5º This Resolution shall enter into force on the date of its publication.

FEDERAL SENATE, on July 4, 2000

Senator ANTONIO CARLOS MAGALHÃES

President