I do know that the Federal Senate has approved, and I, Renan Calheiros, President, in the terms of art. 48, inciso XXVIII, of the Rules of Procedure, promulgated the following

RESOLUTION # 3, DE 2006

Authorizes the Federative Republic of Brazil to hire external credit operation with the International Bank for Reconstruction and Development-Bird, in the total value of up to US$ 8,000,000.00 (eight million U.S. dollars), whose resources are intended for financing the Project of Technical Assistance to the Reforms Program for the Human Development Sector-HD-TAL.

The Federal Senate resolves:

Art. 1º It is the Federative Republic of Brazil authorized to hire external credit operation, with the International Bank for Reconstruction and Development-Bird, worth up to US$ 8,000,000.00 (eight million U.S. dollars).

§ 1º The features advinted from the external credit operation referred to in the caput will be used for finance the Technical Assistance Project to the Reforms Program for the Human Development Sector-HD-TAL.

§ 2º The authorization provided in the caput is conditioned:

I-upon receipt by the Bird of legal opinion regarding the legality of the Contract ;

II-to the conclusion of legal agreement between the Ministry of Finance and the Brazilian Institute Foundation of Geography and Statistics-IBGE, with legal opinion from the Attorney General of the National Farm-PGFN and IBGE confirming the legality of the agreement ;

III-the establishment of the project implementation units in the Ministry of Health and the IBGE ;

IV-to the Ministry of Finance to demonstrate compliance with the intended contractual conditions, upon preview of the Bird.

Art. 2º The credit operation referred to in art. 1º should be carried out under the following conditions:

I-dever: Federative Republic of Brazil ;

II-credor: International Bank for Reconstruction and Development-Bird ;

III-worth: US$ 8,000,000.00 (eight million U.S. dollars) ;

IV-loan modality: fixed margin, with all possible conversions and automatic fixation of interest rate every 6 (six) months ;

V-deadline of disbursement: until July 31, 2009 ;

VI-amortization: 24 (twenty-four) consecutive semi-annual installments, due to every 15 of January and July 15, between January 15, 2011 and July 15, 2022, being the 23 (twenty-three) first installments worth US$ 333,600.00 (three hundred and thirty-three thousand and six hundred U.S. dollars), or 4.17% (four integers and seventeen hundredths) of the disbursed value, and the 24ª (twenty-fourth) installment in the value of US$ 327,200.00 (three hundred and twenty-seven thousand and two hundred U.S. dollars), or 4.09% (four integers and nine hundredths per cent) of the value disbursed ;

VII-interest: required semester, due on January 15 and July 15 of each year, calculated on the periodic debtor balance of the loan, at an initially fluctuating annual rate, equivalent to the rate?Libor? of 6 (six) months for the U.S. dollar and margin (?spread?) from 0.50% a.a. (fifty hundredths per cent a year) ;

VIII-commission of engagement: from 0.85% a.a. (eighty-five hundredths per year) on the non-disbursed debtor balances of the loan, required semester on the same interest payment dates, entering into force 60 (sixty) days after signing of the Contract, up to the 4º (fourth) year of its entry into force, and from 0.75% a.a. (seventy and five hundredths per cent a year) onwards ;

IX-commission in sight: up to 1% (one per cent) on the value of the loan, to be debited on the date on that the Contract enter into effectiveness.

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

Art. 3º The authorisation granted by this Resolution is to be exercised within 540 (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 January 25, 2006.

Senator Renan Calheiros

President of the Federal Senate