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CLIENT OF COSTA RICA ON COMPUTER PARTS. WE DON'T HAVE SOME OF THE COMMODITY ISSUES THAT OTHER COUNTRIES AND LATIN AMERICA SUFFER. THE BOND SALES, WHICH ARE STILL ON THE WAY, IT'S NOT MOVING VERY FAST. WE ARE NOT PUSHING IT TOO MUCH TO HAVE AN ANSWER. WE ARE IN THE MIDST OF THAT PRELIMINARY STAGE. IT IS NOT THE FUNDAMENTAL WAY TO DO WITH DEFICIT. WE ARE DEALING WITH FISCAL REFORM, EXPENDITURES, SO WE HOPE TO FIX THE DEFICIT USING THOSE TOOLS, WHICH ARE MORE RELIABLE THAN BOND SALES. ALIX: YOU DID ANNOUNCE YOU WANT TO OVERHAUL YOUR TAX SYSTEM, 15% ON CAPITAL GRAINS, INCREASING THE VALUE ADDED TAX. WHAT IS IT LIKE TO GET THESE REFORMS THROUGH? WHAT KIND OF DEALING DO YOU HAVE TO DO? >> NO ONE WANTS TO PAY TAXES. THREE GOVERNMENTS HAVE ATTEMPTED TO REFORM, BUT HAVE NOT BEEN SUCCESSFUL. IF YOU WANT TO DO THE RIGHT AND RESPONSIBLE THING, WE HAVE TO CLEAN UP OUR FINANCES NOW, OTHERWISE BY THE END OF MY TERM, IS GOING TO BE MORE DIFFICULT FOR ANYBODY GETTING ELECTED. WE ARE DEALING WITH A CONGRESS THAT IS RESISTING, BUT WE ARE TALKING. WE SEE THE TWO MAJOR TAX PROPOSALS, THE VALUE ADDED TAX AND INCOME TAX, AND OTHER SMALLER INITIATIVES, SOME OF WHICH HAVE BEEN APPROVED OR WILL BE APPROVED SOON, SO I THINK THE CONDITIONS, THE POLITICAL CONDITIONS, ARE THERE TO HAVE THE FISCAL REFORM APPROVED IN A FEW MONTHS. JOE: ONE OF THE THINGS WE HAVE SEEN GLOBALLY IS THAT EVERY CURRENCY HAS FALLEN AGAINST THE DOLLAR. PEOPLE VIEW THAT AS A KEY OF RECOVERY, ECONOMIES BECOME MORE COMPETITIVE, BUT THAT HAS NOT BEEN THE CASE AND COSTA RICA WHERE THE CURRENCY HAS HELD UP WELL. DOES THAT CONCERN YOU AT ALL? WOULD YOU LIKE YOUR CURRENCY TO BE WEAKER? >> THE CENTRAL BANK HAS ALL THE STUDIES SAYING HOW MUCH THE MONEY IS WORTH. WE HAVEN'T BEEN REQUIRED TO BY IS MUCH PETROLEUM THIS YEAR, AND THE PRICES HAVE DROPPED ON THE ONE HAND. WE HAVE BEEN ALMOST 100% RENEWABLE IN OUR ELECTRICITY PRODUCTION FOR MOST OF THIS YEAR BECAUSE OF THE WEATHER ISSUES, A PROLONGED RAINY SEASON, AND SO IF THE CURRENCY IS THE EVALUATED, IT WILL BE FOR POLITICAL REASONS. I DON'T WANT TO TOUCH THE MACRO ECONOMIC FORCES, BECAUSE I KNOW THAT IF SOMETHING HAPPENS THERE UNEXPECTEDLY OR EXPECTEDLY, LIKE RAISING INTEREST BY THE FED AT THE END OF THE YEAR, THEN WE WILL BE IN TROUBLE. SOME OF THE SECTORS THAT ARE CALLING FOR DEVALUATION FOR COSTA RICA, LIKE THE EXPORTERS, TOURISM, TWO MAIN AREAS IN OUR ECONOMY, HAVE TO REALIZE THAT WE HAVE TO BE VERY CAREFUL IN DEALING WITH THESE THINGS, BECAUSE THE UNEXPECTED IMPACTS IN THE MEDIUM-TERM CAN BE SERIOUS. ALIX: PROBABLY THE ONLY PEOPLE TO HEAR THEY DON'T WANT A WEAKER CURRENCY. WHEN YOU LOOK AT YOUR BUDGET AND THE FISCAL DEFICIT WIDENING, AND ALSO SEEING A LOSS OF JOBS FROM UNTIL AND BANK OF AMERICA, WHAT DO YOU NEED TO DO TO PROVIDE GROWTH AND BRING MORE JOBS BACK? >> WE HAVE TO DEAL WITH COSTS . THE ENERGY COSTS FOR THE INDUSTRIAL SECTOR IS BEING LOWERED. WE HAVE A TALENTED WORKFORCE. THIS IS SOMETHING THAT CONTINUES TO BE STRONG, EVEN AT TIMES OF STRENUOUS PHYSICAL -- FISCAL CIRCUMSTANCES, WE ARE KEEPING OUR INVESTMENT IN EDUCATION, AND WE ARE MORE LOOKING -- LOOKING MORE EAGERLY FOR INVESTMENTS. THEN ONCE AGAIN , WE WANT TO INVEST MORE IN INFRASTRUCTURE, MORE AND PROJECTS THAT RAMP UP THE ECONOMY. IT IS A COMBINATION OF THINGS. JOE: THANK YOU SO MUCH. THE PRESIDENT OF COSTA RICA. WE WILL BE RIGHT BACK. ♪