"The general consolidation of public finance had to yield results and I am pleased international financial institutions have recognise this," Suker told Hina over the phone.
The IMF Executive Committee concluded that Croatia had made significant headway in implementing measures agreed in the stand-by arrangement and approved that it be extended until November 15.
Suker recalled IMF First Deputy Director Anna Krueger's assessment that the good results were backed by impressive combined fiscal adjustments, and IMF permanent representative to Croatia Athanasios Vamvakidis's assessment that fiscal transparency had improved considerably.
These two factors, alongside the structural reforms carried out last year, resulted in a 4.3 per cent economic growth rate in 2005, a budgetary deficit of 4.2 per cent of GDP at the end of the year, as planned, and the inclusion in this year's budget of all budgetary beneficiaries and their revenues, said the minister.
He added that this year's national budget struck a balance between economic and social needs.
Suker underlined that the government had also managed to tackle the informal economy. He backed this by stating that budgetary revenue today was about 15 per cent higher than at the same time last year, VAT revenue was 28 per cent higher, while excise revenue was up about 10 per cent.
"Those are the results of this government's economic policy," said Suker.
Suker voiced confidence the Ivo Sanader Cabinet would be the first government to successfully complete its stand-by arrangement with the IMF and that following arrangements, to remain in force until Croatia's accession to the European Union, would be much more liberal.
He concluded by saying that it was important to successfully complete the existing arrangement by October or November.