I do know that the FEDERAL SENATOR has approved, and I, ANTÔNIO CARLOS MAGALHÃES, PRESIDENT, pursuant to art. 48, item 28, of the Rules of Procedure, promulgated the following

RESOLUTION NO. 16, OF 2000.

Authorizes the Brazilian Company of Post Offices and Telégraphs-ECT to temporarily raise its borrowing limits, so that it can hire external credit operation with Japan Bank for International Cooperation-JBIC and Marubeni Corporation, at ₹ ¥ 6,839,081,549 (six billion, eight hundred and thirty-nine million, eighty and one thousand, five hundred and forty and nine yen), to give continuity to the modernization process, concerning the Recreation and Magnification Program of the Telecommunication System and the Postal System-Paste.

THE FEDERAL SENATE,

resolves:

Art. 1º It is the Brazilian Company of Posts and Telégraphs-ECT authorized, pursuant to art. 9º of Resolution No. 96, 1989, re-established by Resolution No. 17, of 1992, both of the Federal Senate, to temporarily raise its borrowing limits so that it can hire external credit operation at the value of ¥ 6,839,081,549 (six billion, eight hundred and thirty-nine million, eighty and one thousand, five hundred and forty-nine yen), together with the Japan Bank for International Cooperation-JBIC and the Marubeni Corporation.

Single paragraph. The proceeds from the credit operation referred to in this article are intended for the import of the goods and services required by the Recreation and Magnification Program of the Telecommunication System and the Postal-Paste System.

Art. 2º The basic financial conditions of the credit operation are as follows:

I-borrower: Company Brasileira de Correios e Telégraph-ECT;

II-guarantor: Banco do Brasil S.A.;

III-total value: ¥ 6,839,081,549 (six billion, eight hundred and thirty-nine million, eighty and one thousand, five hundred and forty-nine yen), equivalent to about 62, to 406, to 927.00 (sixty-two million, four hundred and six thousand, nine hundred and twenty-seven U.S. dollars) at the data-base of December 9, 1999;

IV-purpose: deployment of the Recovery and Magnification Program of the Telecommunications System and the Postal System- Paste;

V-loan in modality Buyer's Credit, corresponding to 85% (eighty five percent) of the total value:

a) creditor: Japan Bank for International Cooperation- JBIC;

b) value: ¥ 4,778,340,931 (four billion, six hundred and sixty-eight million, three hundred and forty thousand, nine hundred and one yen), equivalent to US$ 46.436.744.00 (forty-six million, four hundred and thirst and six thousand, seven hundred and forty-four U.S. dollars);

c) disbursement: and agreement with the commercial contract embarkation scheme, against submission of pre-approved documents, within a maximum of two years and six months;

d) deficiency: six months after the issuance of the Certificate of Prontiary for the Operation of each batch of equipment delivered or twenty-one; twenty-four; twenty-six; and thirty months after the signing of the Contract of Funding for each tranche-as per the delivery of the systems;

and) total disbursement term: one hundred and fifty months, including the grace period and that of the amortization, as of the date of signing of the Contract of Funding;

f) interest: rate based on the Commercial Interest Reference Rate-CIRR fixed at 2.1% a.a. (two integers and one tenth percent a year) to invigorate throughout the life of the loan, incident on the disbursed value of the loan, calculated and paid semestally from the first disbursement;

g) commission of commitment: 0.25% a.a. (twenty five hundredth per cent per year), payable at the end of each semi-annual period, from the date of signing of the financing, calculated on the unused plot;

h) expenses: up to a ceiling of ¥ 10,000,000 (ten million yen);

i) main payment conditions: in twenty semiannual, equal and consecutive installments, winning the first six months after the entry into operation of each system delivered or twenty-one; twenty-and four; twenty-six; and thirty months of the signing of the Financing Contract for each tranche;

VI-financial credit: Signal and Part of the Local Costs, corresponding to 15% (fifteen percent) of the total value:

a) creditor: Marubeni Corporation;

b) value: ¥ 2,060,740,618 (two billion, sixty million, seven hundred and forty thousand, six hundred and eighteen yen), equivalent to 20, to 026, 634.00 (twenty six million, six hundred and thirty-four U.S. dollars), being ¥ 1,025,862,232 (one billion, twenty-five million, eight hundred and sixty-two thousand, two hundred and thirty-two yen) of signal and ¥ 1,034,878,386 (one billion, thirty-four million, eight-hundred and seventy-eight thousand, three hundred and eighty-six yen) of local costs;

c) disbursement: against the submission of pre-approved documents, in accordance with the Commercial Contract, within the maximum term of eight years;

d) deficiency: six months after the issuance of the Certificate of Prontigation for Operation of each system delivered or twenty-one; twenty-four; twenty-six; and thirty months after the signing of the Financing Agreement for each tranche;

e) total disbursement term: one hundred and twenty-six months, including the grace period and that of the amortization, as of the signing date of the Financing Contract;

f) interest: LTPR Rate- Long Tern Prime Rate of Japan, increased from 2.5% a.a. (two whole and five tenths per cent per annum), paid at the end of each semester;

g) management committee: 1.95% (one whole and ninety-five hundreth per cent) of the loan amount, payable soon after the signing of the Contract;

h) commission of commitment: 1.50% a.a. (an integer and fifty hundrths per cent per annum), payable at the end of each semi-annual period, from the date of signing of the Contract, calculated on the unutilated repayment of the loan;

i) general expenses: limited to 0.1% (one tenth per cent) of the value of the financing, payable after due substantiation;

j) conditions of payment of the principal: sixteen consecutive and equal semester plots, being the first six months after entry into operation of each system delivered or twenty-one; twenty-four; twenty-six; and thirty months of the signing of the Financing Contract for each tranche.

Single paragraph. The dates stipulated for repayment may be extended to maintain correlation with the effective date of conclusion of the Contract.

Art. 3º The authorization granted by this Resolution is to be exercised within a time frame of five hundred and forty days, counted from the date of its publication.

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

FEDERAL SENATE, on March 15, 2000.

Senator ANTÔNIO CARLOS MAGALHÃES

PRESIDENT