Somalia's Five-Year Plan for 1987-91 largely reflected the international pressures and incentives of the IMF and AID. Privatization was written into the plan, as were development projects that were smaller in scale and more easily implemented. By 1988 the government had announced implementation of many IMF and AID-encouraged structural adjustment policies. In regard to foreign exchange, the government had taken many intermediate steps that would lead to the merger of the pegged and market rates. As for banking, legislation had been enacted allowing private banks to operate. In public finance, the government had reduced its deficit from 10 to 7 percent of GDP, as had been advised, but acknowledged that the increased taxes on fuel, rent, and sales had been only partially implemented. A value-added tax on fuel imports remained under consideration, but the tax on rental income had been increased and the sales tax raised from 5 to 10 percent. The government continued to procrastinate concerning public enterprises, holding only informal discussion of plans to liquidate unprofitable enterprises.