I get to know that the Federal Senate has approved, and I, Jader Barbalho, President, in the terms of art. 48, item 28, of the Rules of Procedure, promulgated as follows

RESOLUTION NO. 8, OF 2001

Authorizes the Bank of the Northeast Brazil S/A-BNB to hire, with the guarantee of the Federative Republic of Brazil, operation of external credit in the amount equivalent to up to US$ 150,000,000.00 (one hundred and fifty million U.S. dollars), from principal, to the Inter-American Development Bank-BID, intended for the partial financing of the Expansion Program of Markets for Small and Medium Enterprises-PEM.

The Federal Senate resolves:

Art. 1º It is the Bank of Northeast Brazil S/A-BNB authorized to hire external credit operation at the equivalent value of up to US$ 150,000,000.00 (one cent and Fifty million U.S. dollars), from principal, to the Inter-American Development Bank-BID, intended for the partial financing of the Markets Expansion Program for Small and Medium Enterprises-PEM.

Art. 2º The credit operation referred to in the art. 1º presents the following financial characteristics:

I-debtor: Bank of the Northeast of Brazil S/A-BNB;

II-creditor: Inter-American Development Bank-BID (Washington/US);

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 150,000,000.00 (one hundred and fifty million U.S. dollars);

V-term: two hundred and forty months;

VI-deficiency: fifty-four months, from the disbursement;

VII-interest: at a variable rate equal to the Cost of the Multimonetary Loans Qualified increased spread, determined at the end of each semester, on the debtor balance of the principal, incurred after each disbursement;

VIII-commission of commitment: limited to 0.75% a.a. (seventy-five hundred percent a year), on the value of the principal of the undisbursed loan, starting to invigorate sixty days after the Contract's signature date;

IX-inspection fee and general supervision: limited to US$ 1,500,000.00 (one million and five hundred thousand U.S. dollars);

X-conditions of payment:

a) of the principal: amortized in thirty-two semi-annual installments, consecutive and as much as possible equal, on January 10 and July 10 of each year, winning the first on July 10, 2005;

b) of the interest: semestrally overdue, on January 10 and July 10 of each year, the first instalment on July 10 of 2001;

c) of the commission of commitment: payable semestally, together with the interest installments;

d) inspection fee and general supervision: payable quarterly.

Art. 3º It is the Federative Republic of Brazil authorized to grant guarantee to the credit operation to which the arts refer. 1º and 2º, upon offer of contragarantias by BNB.

Art. 4º The conclusion of the Contract of the credit operation together with the BID is conditional on the preview formalization of the Contract referred to in art. 3º and the proof of full inclusion of the Markets Expansion Program for Small and Medium Enterprises-PEM, in the Multiannual Plan for 2000-2003.

Art. 5º The authorization granted by this Resolution is to be exercised within five hundred and forty days, counted from the date of its publication. (Vide Resolution # 8, from 2003)

Art. 6º This Resolution takes effect on the date of its publication.

Federal Senate, on June 5, 2001

SENATOR JADER BARBALHO

President of the Federal Senate