Key Benefits:
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 Rules of Procedure, promulgated the following
R E S O L U Ç Ã ¨
No. 5, DE 2004
Authorizes the Municipal Prefecture of São Paulo to hire external credit operation, with a guarantee of the Federative Republic of Brazil, with the Inter-American Development Bank-BID, worth US$ 100,400,000.00 (one hundred million and four hundred thousand U.S. dollars), of principal, intended to finance, partially, the Program Rehabilitation of the Central Area of the Municipality of São Paulo? Procentro.
The Federal Senate resolves:
Art. 1º It is the Municipal Prefecture of São Paulo authorized to hire external credit operation, with a guarantee of the Union, with the Inter-American Bank of Development? BID, worth US$ 100,400,000.00 (one hundred million and four hundred thousand U.S. dollars).
Single paragraph. Do the advinds resources of the external credit operation referred to in the caput are intended for the partial financing of the Central Area Rehabilitation Programme of the Municipality of São Paulo? Procentre.
Art. 2º The credit operation referred to in the art. 1º should be carried out in the following conditions:
I? creditor: Inter-American Development Bank? BID;
II? guaranteed: Federative Republic of Brazil, having as a counterclaim, as defined in the text of the Municipal Act No. 13,495 of January 7, 2003, authorizing the intended loan, the binding of resources of which they treat the arts. 156, 158 and 159 of the Federal Constitution, and of other guarantees in law admitted;
III? value: US$ 100,400,000.00 (one hundred million and four hundred thousand U.S. dollars), equivalent to R$ 288,348,800.00 (two hundred and eighty-eight million, three hundred and forty-eight thousand, eight-hundred real ones), on June 30, 2003;
IV? term of disbursement: up to 6 (six) years, may not be less than 3 (three) years;
V? loan modality: loan of the unimonetary mechanism;
VI? amortization: in semi-annual, consecutive and value plots, as much as possible, equal, winning the first 6 (six) years and 6 (six) months counted from the signature, and the last one in 25 (twenty five) years, counted from the signing of the Contract of the Loan;
VII? interest: required semiannually, calculated on the periodic debtor balance of the loan, at an annual rate for each quarter comprised of the (i) interest rate Libor quarterly to U.S. dollar, (ii) more (or less) a cost margin related to the loans that finance the Libor modality loans, (iii) plus the net value of any cost / profit generated by operations to mitigate the Libor fluctuations and (iv) plus the margin for loans from the ordinary capital;
VIII? compromise commission: required semester on the same dates of the interest payment and calculated based on the rate of 0.75% a.a. (seventy-five hundred percent a year) on the undisbursed balance of the loan, coming into effect 60 (sixty) days after the signing of the Contract;
IX? inspection rate and general supervision: US$ 1,004,000.00 (one million and four thousand U.S. dollars), disbursed in quarterly installments as much as possible, equal.
Art. 3º Is the Union authorized to grant warranty to the Municipal Prefecture of São Paulo in the external credit operation referred to in the art. 1º of this Resolution.
Single paragraph. The intended permit in the caput is conditional on the São Paulo Municipal Prefecture bound, as a counterbalance to the Union, the resources of which they treat the arts. 156, 158 and 159, in the terms of art. 167, § 4º, all of the Federal Constitution, and other guarantees in law admitted, upon formalization of contract of contragarantia, and the Federal Government may retain necessary importances directly from the centralizing accounts of the fundraising Municipality.
Art. 4º The authorization granted by this Resolution is to be exercised within 540 (five hundred and forty) days, counted as of the date of its publication.
Art. 5º This Resolution takes effect on the date of its publication.
Federal Senate, on May 7, 2004
Senator Jose Sarney
President of the Federal Senate