When the government was drawing up the budget, making significant cuts, we were still nearly HRK 10 billion in the red, which we could service only with a loan. Here is the message, when we stop being in the red, there will be no loans, Linic said when asked if last week's borrowing in the US of $1.5 billion was the best thing to do at the moment.

He said it was job well done, both timely and with a low interest.

The government's programme is very clear, to cut spending and be disciplined in spending and the budget, while increasing investments and revenues. Before the end of the term, the budget will be in the black, which means that we will no longer have to borrow and will start thinking about paying back the loans, said Linic.

Asked if reforms would include bringing order to public companies and layoffs, or layoffs in the state administration, he said there would be both.

"Public companies always come first, because they must ensure their own funds for investments, not only through loans. Investments mean jobs, which means that we simply must reduce all the irrationalities we inherited, namely too many employees. The same goes for the state administration, but when it comes to it, it is more important how to turn to investors, be efficient in dealing with their demands, how to deal with health and education."

The anchorman said nearly nobody believed in a GDP growth of 0.8 per cent and asked when investments could be expected.

Linic said a good number of management boards had been changed, plans and programmes had been drawn up, and that a series of tenders were expected in May.

He expects works to begin in June, which he said meant the hiring of both construction companies and those selling equipment.

That will result in 0.8 per cent growth. That's realistic because those are state and feasible investments. I believe we will show that the government was right, said Linic.

Asked if the publication of the list of tax debtors should already have been published, Linic said the government was drawing up a general tax bill and that it would be sent to parliament for two readings. He said the bill would be enacted in May, when the first lists of the tax debtors would be published.

Linic said the government was less concerned about the lists than about new possibilities for the Tax Administration to penalise through administrative procedures all those who cheated the state and creditors.

Linic said no one would be exempt. If they pay taxes, they are citizens who should be respected, and if they don't, they are some of the biggest criminals. And we have to treat them as such in order to be responsible towards citizens, said Linic.

Asked if writing off the bulk of HRK 45 billion as a way of dealing with illiquidity was unfair to those who had regularly paid taxes, Linic said it was, but that it was the only way not to lay off workers who were not guilty because their employers had not paid taxes.