I get to know that the Federal Senate has approved, and I, Ramez Tebet, President, in the terms of art. 48, inciso XXVIII, of the Rules of Procedure, promulgated the following

R E S O L U Ç Ã ° 42, DE 2002

Authorizes the Union to provide guarantee in external credit operation to be contracted by the State of Paraná with the Inter-American Development Bank-BID, worth US$ 100,000,000.00 (one hundred million U.S. dollars), as well as authorizes the State of Paraná to hire the said credit operation, by targeting the resources for financing partial of the Urban Paraná Program II.

The Federal Senate resolves:

Art. 1º It is the authorized Union, pursuant to resolution No. 96, of 1989, reinstated by Resolution No. 17, of 1992, both of the Senate Federal, to provide warranty in external credit operation to be contracted by the State of Paraná with the Inter-American Development Bank-BID, targeting the resources for the partial financing of the Urban Paraná Program II.

Art. 2º It is the State of Paraná authorized, pursuant to Resolution No. 43, of 2001, of the Federal Senate, to be hired with the Inter-American Development Bank-BID the external credit operation referred to in art. 1.

Art. 3º The external credit operation to which the art relates. 1º has the following characteristics:

I-value: US$ 100,000,000.00 (one hundred million U.S. dollars), of principal;

II-guarantor: Federative Republic of Brazil;

III- deadline: 25 (twenty five) years;

IV-deficiency: 5 (five) years;

V-interest: required semiannually, calculated on the daily debtor balances of the loan at an annual rate for each given semester by the cost of the Qualified Multimonetary Loans taken by the BID during the previous semester, plus a differential that the BID will periodically set in accordance with its interest rate policy; to be paid on the days April 15 and 15 of October each year, as of October 15, 2002;

VI-credit commission: 0.75% a.a. (seventy-five hundred percent a year) on the debtor balance undisbursed from the loan, in effect 60 (sixty) days after the signing;

VII-commission of inspection and surveillance: 1% (one percent) on the amount total loan, paid in quarterly installments, as much as possible equals;

VIII-purpose: partial financing of the Urban Paraná Program II.

Art. 4º The hiring of the credit operation external to which the art is referred to. 1, as well as the provision of the guarantee by the Union, shall take effect within the maximum period of 540 (five hundred and forty) days, counted from the date of publication of this Resolution.

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

Federal Senate, on July 2, 2002

Senator RAMEZ TEBET

President of the Federal Senate