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

RESOLUTION NO. 64, OF 2005

Authorizes the Federative Republic of Brazil to hire external credit operation with the International Bank for Reconstruction and Development-Bird, at the total value of up to US$ 502,520,000.00 (five hundred and two million, five hundred and twenty thousand U.S. dollars), whose resources will constitute the Programmatic Loan for Growth with Equities: Housing Sector Policy-1ª Step, in the framework of the Financial Support Program to the Brazil-Pafib.

The Federal Senate resolves:

Art. 1º Is the Federative Republic of the Brazil authorized to hire external credit operation with the International Bank for Reconstruction and Development-Bird, worth up to US$ 502,520,000.00 (five hundred and two million, five hundred and twenty thousand U.S. dollars).

Paragraph single. The advent resources of the external credit operation referred to in the caput will constitute the Programmatic Loan for Growth with Equesity: Housing Sector Policy-1ª Step, in the framework of the Financial Support Program to Brazil-Pafib.

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

I-debtor: Federative Republic of the Brazil;

II-creditor: International Bank for Reconstruction and Development-Bird;

III-value: US$ 502,520,000.00 (five hundred and two million, five hundred and twenty thousand dollars Americans);

IV-term of disbursement: until June 30, 2006;

V-amortization: 24 (twenty four) semester and consecutive plots, with maturities in 15 of December 2010 and June 15, 2022, corresponding, each of the 23 (twenty-three) first installments at 4.17% (four integers and seventeen hundred percent) of the disbursed value, and the last instalment at 4.09% (four integers and nine hunduths per cent) of the value disbursed;

VI-interest: required semestally on June 15 and in 15 of December each year, calculated on the periodic debtor balance of the loan, at a compound annual rate of the Libor rate of 6 (six) months for U.S. dollar and margin of 0.50% a.a. (fifty centieth per cent per year);

VII-commission of commitment: from 0.85% a.a. (eighty-five hundred percent a year) on the undisbursed balances of the loan, required semiannually on the same interest payment dates, entering into force 60 (sixty) days after the signing of the Contract, up to the fourth year, and 0.75% a.a. (seventy-five hunduths per cent per year) onwards;

VIII-initial fee (front-end-fee): 0.5% (five tenths per cent) on the value of the loan, to be debited on the date the Contract enters into effectivity.

Paragraph single. The payment dates of the principal and the financial burden can be changed depending on the signing date of the Loan Agreement.

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

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

Federal Senate, on November 23, 2005

Senator Renan Calheiros

President of the Federal Senate