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. 69, OF 2005

Authorizes the State of Minas Gerais to hire external credit operation, with guarantee from the Union, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 35,000,000.00 (thirty-five million U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the State of Minas Gerais authorized to hire external credit operation, with Union warranty, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 35,000,000.00 (thirty five million dollars Americans).

Single paragraph. The advinds proceeds from the external credit operation referred to in the caput are intended for the partial financing of the North-East Mining Region's Rural Poverty Alleviating Project (PCPR) 1ª Phase.

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

I-debtor: State of Minas Gerais;

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

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 35,000,000.00 (thirty-five million U.S. dollars);

V-deadline of disbursement: until July 31, 2010;

VI-amortization: 24 (twenty-four) semi-annual and consecutive plots, of values as much as possible equal, overdue each April 15 and October 15, between October 15, 2010 and April 15, 2022;

VII-interest: required semiannually on April 15 and October 15 of each year, calculated on the periodic debtor balance of the loan, at an annual rate composed by Libor de 6 (six) increased months of spread to be defined on the signing date of the loan, invigorating until its closure;

VIII-commitment commission: required semester on the same payment dates of interest and calculated on the basis of the maximum rate of up to 0.85% a.a. (eighty-five hundred percent a year) on the undisbursed debtor balances of the loan, vigorating from 60 (sixty) days after the signing of the contract until the fourth year, and from 0.75% a.a. (seventy-five hunduths per cent a year) onwards;

IX-initial fee: 1% (one per one) on the total loan amount, to be debited from the loan account, when from the effectivity of the contract.

Paragraph single. The payment dates of the principal, the financial charges and the expected disbursements will be able to be changed depending on the date of signing of the loan agreement.

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

Paragraph single. 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 revenue allocation quotas provided for in the arts. 157 and 159, complemented by own revenue, in the terms of 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 honorable commitments, directly from the centralizing accounts of the state's fundraising.

Art. 4º A 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. 5º This Resolution comes into effect on the date of its publication.

Federal Senate, on December 15, 2005

Senator Renan Calheiros

President of the Federal Senate