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

R E S O L U Ç Ã ° 16, DE 2007

Authorizes external credit operation, with guarantee from the Federative Republic of Brazil, between the National Bank for Economic and Social Development (BNDES) and the Inter-American Bank of Development (BID), at the equivalent value of up to US$ 1,000,000,000.00 (one billion U.S. dollars), whose resources are intended for the financing of the BNDES Program of Multissetorial Credit for Micro, Small and Medium Enterprises- Second Step of the Conditional Credit Line Convium (CCLIP).

The Federal Senate resolves:

Art. 1º It is the Federal Republic of Brazil authorized to grant guarantee to the external credit operation to be contracted by the National Economic and Social Development Bank (BNDES), at the total value equivalent to up to US$ 1,000,000,000.00 (one billion U.S. dollars), together with the Inter-American Bank of Development (BID).

§ 1º The advinds features of this credit operation are intended for the financing of the BNDES Program of Multissetorial Credit for Micro, Small and Medium Enterprises-Second Step of the Conventional Credit Line Congenium (CCLIP).

§ 2º The intended authorization in the caput is conditioned on verification, by the Ministry of Finance, upon demonstration preview of the BID, of the fulfilment of the foreseen contractual conditions.

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

I-debtor: National Bank of Economic Development and Social (BNDES);

II-creditor: Inter-American Bank of Development (BID);

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 1,000,000,000.00 (one billion U.S. dollars);

V-currency of disbursement: U.S. dollar or, by request of the BNDES, real, upon realization of currency conversion by the Bank, at the cost of 0.25% (twenty five hundrth percent) of the converted amount;

VI-deadline of disbursement: up to 4 (four) years, counted as of the effective date of the contract;

VII-amortization of the debtor balance in dollar: up to 32 (thirty-two) plots, successive, as much as possible equal, winning the first 4 (four) years and 6 (six) months after the contract signing date, and the last 20 (twenty) years after that date;

VIII-amortization of the debtor balance in real: fixed for each disbursement, by means of Letter from the BID, based on condition proposed by BNDES, and may be in monthly installments, quarterly, semiannual, annual or single, at the end of the maturity, provided that the maximum repayment term does not exceed 20 (twenty) years from the signing of the contract, and the average life of the loan is not more than 12.25 years (twelve years and twenty and five hunduths of a year);

IX-interest applicable to debtor balances in dollar: will required semester, calculated on the debtor balance of the loan, at an annual rate for each quarter composed by:

a) rate of interest Libor quarterly for the U.S. dollar;

b) cost margin related to the captions that finance the Libor modality loans;

c) net worth of any cost or profit generated by operations to mitigate the fluctuations of Libor;

d) margin on loans from the ordinary capital;

X-interest applicable to debtor balances in real: defined for each disbursement, Conversion Letter constant submitted by the BID, in percent previously accepted by BNDES, and paid together with amortization;

XI-commission of commitment: up to 0.75% a.a. (seventy-five hundred percent a year) calculated on the undisbursed balance of the loan, required together with the interest, going into effect 60 (sixty) days after the signing of the contract;

XII-rate of inspection and general supervision: up to 1% (one percent) of the value of funding;

XIII-advance payment charge in case of conversion: 0.25% (twenty five hundred percent) on the amount paid in advance plus possible cost incurred by the BID for reallocation of its catchment in Reais.

§ 1º The financial conditions, in the case of conversions of the disbursement or the debtor balance, from the dollar to real, will have to obtain the annuence of the National Treasury Board Secretariat.

§ 2º The payment dates of the principal and the financial charges, as well as of the disbursements, provided for in the contractual minuta, may be changed depending on the date of its signature and, in case of currency conversion, may the amortization schedule be renegotiated, provided that it does not exceed the average deadlines, of 12.25 years (twelve years and twenty-and five hundrths of a year), and maximum, of 20 (twenty) years, provided for in the initial contract.

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

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

Federal Senate, on October 4, 2007.

Senator Renan Calheiros

President of the Federal Senate