Finance Minister Slavko Linic said on Thursday 2013 would be tougher than 2012 but that Croatia did not need the International Monetary Fund's assistance because he was confident that Croatia's credit rating would not be cut to speculative grade in the autumn.
Speaking on Croatian Radio, Linic said the government was not giving up from putting the budget in order, economising and raising the tax discipline.
"To the question whether the IMF is coming, I say no. The government is pursuing its policy, the government had the courage to introduce economising and discipline, it's negotiating with unions in very ugly conditions, we are settling accounts with the employers' association very roughly. Therefore, it's the government that has been left alone, without the support of employers but with the support of the bulk of the unions."
Linic said the government was enforcing austerity measures and acting responsibly, which is why Croatia does not need the IMF.
"But if the question is when the government might call the IMF, then I say very clearly that it's possible that we will lose the rating and in that moment it will be very difficult to service our debts without the IMF. If you don't service debts, you will have problems both with domestic consumption and with the execution of the budget."
Croatia's credit rating is one notch above the speculative grade with a negative outlook.
