Speaking at a news conference about the situation in East European and Asian transition countries, Katsu said that Croatia had made good economic progress and that its official candidacy for membership in the European Union would accelerate its development.
He described the prospects of Croatia's future development as positive.
Noting that Croatia was starting from a rather good basis, Katsu said that it was now only a matter of political will to continue economic development.
Asked to comment on the country's foreign debt and budgetary deficit, Katsu said that the foreign debt was the result of Croatia's ambitious infrastructure programme, particularly road construction.
He warned that it was vital to continue consolidating the infrastructure programme, the reform of public finances and the pension system, as well as privatisation.
When signing the latest stand-by arrangement with the IMF in August this year, Croatian authorities expressed their intention to stabilise the foreign debt at 77 percent of Gross Domestic Product and reduce the budgetary deficit from 6.3 percent in 2003 to 4.5 percent in 2004 and 3.7 percent in 2005.
Speaking about challenges for transition countries and East Europe and Asia, Katsu said that they had to strengthen competition, continue building democracy and improving care for all social categories and groups, as well as step up efforts to fight AIDS.