I do know that the FEDERAL SENATE has approved, and, I ANTONIO CARLOS MAGALHÃES, PRESIDENT, pursuant to art 48, item 28, of the Internal Rules, promulgated the following

RESOLUTION NO. 71, OF 2000.

Authorizes the Federative Republic of Brazil to Contreat external credit operation with the Japan Bank for International Cooperation-JBIC, at the equivalent value of up to ¥ 8,388,895,802 (eight billion, three hundred and eighty-eight million, eight hundred and ninety-five thousand, eight hundred and two Japanese yen) of pricinpal, aimed at refusals the partial financing, acquisition of goods and services under the Programme of Modernization and Consolidation of the Academic Infrastructure of the Federal Institutions of Higher Education and University Hospitals.

THE FEDERAL SENATE,

RESOLVE:

Art. 1º It is authorized the Federative Republic, pursuant to Resolution No. 96, of 1989, reinstated by Resolution No. 17, of 1992, both of the Federal Senate, to hire external credit operations with Japan Bank for International Cooperation-JBIC, at the equivalent of up to ¥ 8,388,895,802 (eight billion, three hundred and eighty-eight million, eight hundred and ninety-five thousand, eight hundred and two Japanese yen), from pricipal, aimed at the resources for partial financing of the acquisition of goods and services within the framework of the Modernization and Consolidation Program of the Academic Infrastructure of the Federal Institution of Higher Education and University Hospitals.

Art. 2º The external credit operation of which treats art. 1º has the following characteristics: (Vide Resolution # 28, from 2002)

I-borrower: Federative Republic of Brazil;

II-lender: Japan Bank for International Cooperation-JBIC;

III-nature of the operation: external loan

IV-purpose: to finaciate, partially, acquisitions of goods and services of the companies Marubeni Corporation and Nissho Iwai, concerning the Modernization Programme and Consolidation of the Academic Infrastructure of the Federate Institutions of Higher Education and University Hospitals;

V-value: equivalent to up to ¥ 8,388,895,802 (eight billion, three hundred and eighty-eight million, eight hundred and ninety five thousand, eight hundred and two Japanese yen) of principal;

VI-deadline: one hundred and twenty months;

VII-deficiency: six months, as of the date scheduled for the last disbursement, the placement of the services the provisional acceptance or equivalent expression;

VIII-interest: at the CIRR rate, for JPY, fixed on the date of signing of the contract, 1.95% a.a. (one whole and ninety five hunduths per cent per annum) for the period from July 15, 2000 to August 14, 2000, increased risk premium on the principal debtor balance, incurred after each disbursement;

IX- risk premium: award to be increased at the rate of interest, with a view that contracts for the supply of the subject goods from the financing contract have been signed posterioment to July 30, 1999;

X-general expenses: the reasonable, upon proof, limited to 0.1% (one tenth per cent) of the finaciated value;

XI-interest rate: interest rate of the increased operation of 1.00% a.a. (one percent a year);

XII-conditions of payment:

a) of the principal: amortized in twenty semiannual, consecutive, approximately equal installments, winning the first on the second day of the sixth month after the date originally scheduled for the last disbursement, the placement of the services, the provisional acceptance or equivalent expression;

b) of the interest: semestrally overdue, together with the plots of the principal;

c) of the general expenses: after approval of the Financial Operation Registry-ROF.

Single paragraph. The current indicative value for the risk premium is 2.70% a.a. (two integers and seventy hundrths percent a year), being subject to change, as per the financial conditions adopted, owing to the guiding principles for the establishment of European Organization premium rates. for Cooperation and Development (OECD).

Art. 3º The contracting of the external credit operation referred to in this Resolution is to take effect within the maximum of five hundred and forty days, counted from the date of its publication.

Art. 4º This Revolution comes into effect on the date of its publication.

FEDERAL SENATE, on December 19, 2000.

SENATOR ANTONIO CARLOS MAGALHÃES

PRESIDENT