He is also known for having started structural adjustment programs, following a strong neoliberal approach. He initiated the privatization of Salvadoran banks. His wife's family bought a considerable amount of stock of one of El Salvador's largest banks, Banco Cuscatlán, which was later bought by Citi Bank. He also is responsible for the privatization of Hotel Presidente. His government also supported a unilateral reduction of Salvadoran trade barriers, the introduction of the Value Added Tax, and the elimination of other direct taxes. Despite the fact that the tax revenues were reduced, government expenditures remained high.