According to Central Bank Governor Jose Lois Malkum, the 2004 budget will comply with the International Monetary Fund’s stipulation of a guaranteed surplus of at least 1.5% of GDP and a systemic risk law will be approved. Malkum also justified the imposition of new taxes, such as the vastly unpopular surcharge on exports and the US$20 travelers’ exit tax. The IMF is demanding that these new taxes be implemented through legislation, as opposed to Presidential decrees. The authorities recognize the need to raise more revenue through taxation and are committed to signing an agreement with the Fund: “We must reach an agreement and we will reach an agreement – even if we have problems reaching it,” said the CB official, hinting of difficulties in the IMF negotiations. Malkum also revealed that there remained a gap to be filled of RD$6.2 billion. He was speaking to reporters following a meeting with fellow government economic team members, Finance Minister Rafael Calderon and the President’s Office Technical Secretary Carlos Despradel, who insisted that the deficit was a result of insufficient fiscal income rather than excessive spending. Malkum linked the peso’s continued freefall against the dollar to the uncertainty surrounding the IMF agreement. The economic team expressed confidence that an agreement would be signed before the year was out, and predicted disbursements of US$250 million.