Suker and Croatian National Bank (HNB) governor Zeljko Rohatinski last weekend took part in the annual session of the IMF and the World Bank, during which they held talks with representatives of the two financial institutions.
Suker told Croatian reporters that they informed IMF officials that Croatia would meet all criteria regarding its budgetary deficit from the stand-by arrangement, both with regard to revenues and expenses.
He said that the budgetary deficit was within the projected limit of 4.5 percent of GDP. Revenues have seen an increase of six percent in relation to last year, while spending has been at the annual level of 74 percent as planned.
The delegation informed IMF officials that Croatia's objective in 2005 was a budgetary deficit of 3.7 percent of GDP.
Suker said that an IMF mission would visit Croatia in late October, when talks would continue.
Governor Rohatinski said that executive criteria in the monetary sphere in the first nine months of this year had been realised and that they were expected to be realised in December as well.
IMF officials were informed about Croatia's foreign debt in late August, "which is slightly higher than the limit stated in the stand-by arrangement", Rohatinski said, stressing that the growth of the debt had started to slow down in July and August.
In late August Croatia's foreign debt totalled 21.5 billion euros or 79 percent of this year's estimated value of GDP. Under the stand-by arrangement, the foreign debt should be stabilised at 76 percent of GDP.
Rohatinski said the objective was to stabilise the debt at the level from May, and that, although the debt was by 700 million euros higher now, its growth was slowing down.
Asked about comments from IMF officials, Rohatinski said that they did not demonstrate any special concern in light of the fact that the growth of the debt was slowing down.
The HNB has taken measures to discourage banks from additional loan-seeking abroad and will seek loans on the domestic market instead of on the Japanese market as previously planned, Rohatinski said.
The delegation reached agreement with the World Bank's International Bank for Reconstruction and Development (IBRD) on continuing preparations for the CAS assistance strategy, which would make it possible for Croatia to take 1-1.5 billion dollars worth of loans in the next four years, as well as seek advice and the drawing up of studies facilitating its entry into the European Union.
CAS would refer primarily to education, science and technological development, health and social care, agriculture, regional development, the reconstruction of war-affected areas and environmental protection.
The strategy is expected to be delivered to the government upon the delegation's return from Washington.
After consultations, the government is expected to officially approve the strategy, after which the IBRD's board of executive directors is expected to do the same in late November.
The strategy is a precondition for the granting of new loans which are not part of the existing strategy.
The two sides also discussed a PAL loan for structural adjustment, which would be discussed in November.
The Croatian delegation also met the head of the IMF Mission to Croatia, Dimitri Demekas, and the head of the Europe department, Michael Deppler, as well as a World Bank executive director, Ado Melkert, and IBRD vice-president for Europe and Central Asia Shigeo Katsu.
Finance Minister Suker also met his Dutch counterpart Gerrit Zalm, with whom he reached agreement on the Netherlands helping Croatia prepare for EU membership, especially with regard to the tax reform.
Suker met Bosnian Finance Minister Ljerka Maric to discuss Bosnia's plans to introduce VAT, possible harmonisation of excise taxes, and cooperation between the countries' tax and customs services.
Bosnia-Herzegovina intends to introduce VAT and increase excise taxes next year, which would probably reduce tobacco smuggling through Bosnia and Croatia, Suker said.