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

RESOLUTION NO. 58, OF 2005

Authorizes the Federative Republic of Brazil to grant guarantee to external credit operation to be contracted by the National Economic and Social Development Bank-BNDES, at the total value equivalent to up to US$ 60,000,000.00 (sixty million U.S. dollars), together with Nordic Investment Bank-NIB.

The Federal Senate resolves:

Art. 1º It is the Federative Republic of Brazil authorized to grant guarantee to the credit operation external to be contracted by the National Economic and Social Development Bank-BNDES, at the total value equivalent to up to US$ 60,000,000.00 (sixty million U.S. dollars), together with the Nordic Investment Bank-NIB.

Paragraph single. The advection features of this credit operation are intended for the partial funding of the NIB II Multissetorial Program.

Art. 2º The basic financial conditions of the credit operation are as follows:

I-debtor: National Economic Development Bank and Social-BNDES;

II-creditor: Nordic Investment Bank-NIB;

III-total value: up to US$ 60,000,000.00 (sixty million U.S. dollars);

IV-deadline: 180 (one hundred and eighty) months;

V-deficiency: 60 (sixty) months;

VI-interest: required semestically on the same main payment dates, composed by Libor, increased from a spread of 0.90% a.a. (ninety hundres per cent per year); the interest rate may be replaced by a fixed rate offered by NIB, at the request of BNDES, on the date of disbursement or payment of interest;

VII-commit commission: required semester on the same payment dates as interest and calculated on the basis of the rate of 0.50% a.a. (fifty hundred percent a year) on the undisbursed balance of the loan, coming into force 90 (ninety) days after the signing of the contract;

VIII-front-end-fee: 0.20% (twenty hundred percent) flat, deduced from the amount of each tranche disbursed;

IX-disbursement: in up to 2 (two) years counted from the Contract's signature date, in 1 (one) or more tranches not less than US$ 10,000,000.00 (ten million U.S. dollars);

X- amortization: 20 (twenty) semi-annual and consecutive installments, of values as much as possible equal, and must be paid after closing the grace period of 5 (five) years;

XI-interest rates: rate of 1% (one percent) on the greatest value between:

a) rate of interest applicable to the loan agreement; and

b) cost of capturing NIB for the beaten plot, summed to the last margin used or negotiated.

Art. 3º The authorization 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 comes into effect on the date of its publication.

Federal Senate, on September 14, 2005

Senator Renan Calheiros

President of the Federal Senate