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 ° 35, DE 2002

Authorizes the Federative Republic of Brazil to provide assurance in the external credit operation to be contracted between the National Economic and Social Development Bank (BNDES) and Nordic Investment Bank (NIB), worth US$ 100,000,000.00 (one hundred million U.S. dollars), aimed at the resources to be financed by the Financing Project to the Industry in the Scope of the Multissetorial Program.

The Federal Senate resolves:

Art. 1º It is authorized the Federative Republic of Brazil, pursuant to resolution No. 96, of 1989, reinstated by Resolution n17, of 1992, both of the Federal Senate, to provide assurance in the external credit operation to be contracted between the National Bank of Economic and Social Development (BNDES) and the Nordic Investment Bank (NIB), worth US$ 100,000,000.00 (one hundred million U.S. dollars), aimed at the resources to be financed by the Industry Financing Project under the Program Scope Multissetorial.

Art. 2º The external credit operation to which the art relates. 1º has the following characteristics:

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

II-creditor: Nordic Investment Bank (NIB);

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 100,000,000.00 (one hundred million U.S. dollars);

V-disbursement: up to 2 (two) years after the date of signature, in 1 (one) or more tranches not less than US$ 10,000,000.00 (ten million U.S. dollars);

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

VII-deficiency: 66 (sixty-six) months;

VIII-interest: up to 1% a.a. (one percent a year) above the Libor of 6 (six) months for U.S. dollars;

IX-commitment fee: 0.5% a.a. (five tenths per cent per year) on the undisbursed balance of the loan;

X-front-end-fee: 0.2% (two tenths per cent) on the value of the Contract;

XI-payment conditions:

a) of the main: in 20 (twenty) semester plots, consecutive and as much as possible equal, owing to be paid on day 15 of the months of March and September, winning the first in the first payment date in 2008 and the last in the second date of payment in 2017;

b) of the interest: semestrally overdue;

c) of the commitment fee: together with the interest;

d) of the front-end-fee: simultaneously to the disbursement.

Art. 3º The permission granted by this Resolution is to be exercised within the maximum period of 540 (five hundred and forty) days, counted from the date of its publication.

Art. 4º This Resolution takes effect on the date of its publication.

Federal Senate, on June 28, 2002

Senator RAMEZ TEBET

President of the Federal Senate