I do know that the Federal Senate has approved, and I, Garibaldi Alves Filho, President, in the terms of art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

R And S O L U Ç O Ç

No. 39, DE 2008

Authorizes the Federative Republic of Brazil to hire external credit operation to the International Bank for Reconstruction and Development (Bird), worth up to US$ 83,450,000.00 (eighty and three million, four hundred and fifty thousand U.S. dollars), whose resources are intended for partial financing of the?Project of Expansion and Consolidation of Family Health (Proesf II)?

The Federal Senate resolves:

Art. 1º It is the Federative Republic of Brazil authorized to hire operation of external credit to the International Bank for Reconstruction and Development (Bird), worth up to US$ 83,450,000.00 (eighty and three million, four hundred and fifty thousand U.S. dollars).

Paragraph single. The advinds proceeds from the external credit operation referred to in the caput are intended for the partial funding of the Family Health Expansion and Consolidation Project (Proesf II).

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

I? creditor: International Bank for Reconstruction and Development (Bird);

II-value of the loan: up to US$ 83,450,000.00 (eighty and three million and four hundred and fifty thousand U.S. dollars);

III-modality: fixed margin loan (Fixed Spread Loan);

IV-deadline of disbursement: 5 (five) years, counted from the date of entry into force of the contract;

V? amortization: in 50 (fifty) semestral plots, consecutive and, as far as possible, equal. The first depreciation quota is to be paid on August 15, 2013 and the last by the February 15, 2038, with each of the plots will correspond to 2% (two per cent) of the disbursed value;

VI-interest: required semestically, on the same dates of repayment of the amortization, and calculated on the debtor balance journal of the loan, at a rate composed of the interest rate Libor semestral for U.S. dollar increased from a spread to be determined by Bird to each fiscal year and fixed on the date of the contract signing, being 0.05% a.a. (five centisims per cent per year) the agreed fixed margin;

VII-committee in sight: 0.25% (twenty-five hunduths per cent) on the value of the loan, to be debited on the date the contract enters into effect.

Art. 3º The maximum term for the exercise of this authorization is 540 (five hundred and forty) days, counted from its publication.

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

Federal Senate, on December 9, 2008.

Senator Garibaldi Alves Filho

President of the Federal Senate