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

R And S O L U Ç No 45, DE 2009

Authorizes the State of Minas Gerais to hire external credit operation with the Inter-American Bank of Development (BID), with Union warranty, worth up to US$ 40,000,000.00 (forty million U.S. dollars), from principal, intended for financing?Institutional Strengthening Project for Modernization of State Fiscal Management-Profort-SEF?.

The Federal Senate resolves:

Art. 1º It is the State of Minas Gerais authorized to hire external credit operation with the Inter-American Bank of Development (BID), with warranty of the Union, worth up to US$ 40,000,000.00 (forty million U.S. dollars), of principal.

Paragraph single. Do the proceeds from the credit operation referred to in the caput are intended for the financing of?Institutional Strengthening Project for Modernization of State Fiscal Management-Profort-SEF?.

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

I-debtor: State of Minas Gerais;

II-creditor: Inter-American Development Bank-BID;

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 40,000,000.00 (forty millions of U.S. dollars);

V-deadline of disbursement: up to 2 (two) years, counted from the duration of the contract;

VI-modality: Loan in Function of Results (Performance Driven Loan-PDL), with features of the engine unimontarium of the ordinary capital of the BID and interest rate based on Libor;

VII- amortization: in semi-annual and consecutive installments, of values as much as possible equals, winning the first 5 (five) years after the effective date of the contract and the last up to 20 (twenty) years after this date;

VIII-interest: required semestically on the same dates of amortization payments, and calculated on the balance periodic loan debtor, at an annual rate for each quarter determined by the BID and comprised of the quarterly Libor interest rate to U.S. dollar, plus or minus a cost margin related to the BID loans that finance the loans from the Unimonetary Engine with interest rate based on Libor, plus the net value of any cost or profit generated by operations to mitigate the Libor fluctuations, plus the margin (spread) for loans from the ordinary capital;

IX-credit commission: up to 0.75% (seventy and five hundrths per cent) calculated on the balance not disbursed from the loan, required together with the interest, coming into force 60 (sixty) days after the signing of the contract;

X-expenditure on inspection and general supervision: up to 1% (one per cent) of the value of the funding, currently not charged but which, upon notification to the borrower, may be reinstated by the creditor during the period of disbursements, as a result of the review that effective semester on the financial burdens of the loans it grants.

§ 1º The payment dates of the principal and the financial burdens, as well as of the expected disbursements, may be changed depending on the date of signing of the loan agreement.

§ 2º The borrower may, with the written consent of the guarantor, and provided that the terms and conditions set out in the loan agreement are complied with, request the creditor:

I-conversion to a fixed interest rate, of part or of the totality of the debtor balances subject to the Libor-based interest rate; and

II-a new conversion of part or totality of the loan debtor balances calculated at an interest rate fixed for the interest rate based on Libor.

§ 3º The deadlines and minimum amounts required for conversions of which it treats § 2º are those set out in the loan agreement.

§ 4º The costs arising from the realization of the options of which it treats § 2º will be passed on by the BID to the borrower.

Art. 3º It is the Union authorized to provide assurance to the State of Minas Gerais in the hiring of the external credit operation referred to in this Resolution.

Single paragraph. The exercise of the intended permit in the caput is conditioned to which the State of Minas Gerais:

I-celebrates contract with the Union for the granting of countermeasures, in the form of linking the own recipes of which it treats art. 155, and of the revenue apportionment quotas of which treat the arts. 157 and 159, all of the Federal Constitution, and other guarantees in law admitted, and the Federal Government may apply for the transfers of resources necessary for coverage of the honoured commitments directly from the centralizing accounts of the state fundraising or federal transfers;

II-regularize the pendants of débitos on behalf of the Government of the State of Minas Gerais with the Federal Public Administration and its controlled entities; and

III-meet the preconditions to the first disbursement, provided for in the loan agreement.

Art. 4º The maximum time frame for the exercise of this authorization is 540 (five hundred and forty days), counted to as of the duration of this Resolution.

Art. 5º This Resolution comes into effect on the date of his publication.

Federal Senate, in 17 of December 2009.

Senator Jose Sarney

President of the Federal Senate

gab/prs09-086