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. 18, OF 2006

Authorizes the State of Minas Gerais to hire external credit operation, with guarantee from the Union, with the Bank Interamerican Development-BID, worth up to US$ 50,000,000.00 (fifty million U.S. dollars).

The Federal Senate resolves:

Art. 1º It is authorized the State of Minas Gerais to hire external credit operation, with guarantee from the Union, with the Inter-American Development Bank-BID, in value of up to US$ 50,000,000.00 (fifty million U.S. dollars).

Single paragraph. The advinds proceeds from the external credit operation referred to in the caput are intended for the partial financing of the first phase of the Accessibility Improvement Program of Small Municipalities-Proaccess.

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$ 50,000,000.00 (fifty million U.S. dollars);

V-deadline of disbursement: at up to 5 (five) years;

VI-amortization: 42 (forty-two) semestral and consecutive plots, of values as much as possible equal, winning the first on May 14, 2010 and the last one on November 14, 2030;

VII- interest: required semester, on the periodic debtor balance of the loan, and calculated semestally on the basis of Libor quarterly-Libor US$ 3 months, plus spread to be defined on the date of signing of the contract, and may be changed to rate of interest adjusted until the first release;

VIII-commission of commitment: required semester on the same interest payment dates and calculated on the basis of the maximum rate of up to 0.75% a.a. (seventy-five hundred percent a year) on the undisbursed debtor balances of the loan, entering into force 60 (sixty) days after the signing of the contract, with the principle being that the borrower will pay commission of 0.25% a.a. (twenty five hundrths per cent per cent per annum), and this percentage may be modified semi-annually by the Bank without which, under no circumstances, it may exceed the target of 0.75% a.a. (seventy-five hunduths per cent per year);

IX-resources for inspection and supervision general: during the disbursement period, no resources will be reserved for general inspection and supervision, unless the Bank establishes otherwise, being that, in no case, to meet the said expenses in a given semester, they may target resources greater than 1% (one per cent) on the total loan amount, divided by the number of semesters understood in the original disbursement term.

Paragraph single. The dates of payments of the principal, the financial burden and the expected disbursements may be changed depending on the date of signing of the loan agreement.

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

Single paragraph. The permit provided for in the caput is conditional on the State of Minas Gerais to conclude contract with the Union for the granting of countermeasures, in the form of binding of the rights and credits relating to the quotas and the tax revenues provided for in the arts. 155, 157 and 159, combined with the art. 167, § 4º, all of the Federal Constitution, and other guarantees in law admitted, and the Federal Government may withhold the necessary resources for coverage of the commitments honored directly from the centralizing accounts of the state's fundraising.

Art. 4º The authorization granted by this Resolution is to be exercised within the maximum period of 540 (five hundred and forty) days, counted from its publication.

Art. 5º This Resolution takes effect on the date of its publication.

Federal Senate, on April 18, 2006.

Senator Renan Calheiros

President of the Federal Senate