Zagreb (AFP) - Croatia's ruling coalition was on the brink of collapse Friday after the head of the government's dominant party said it no longer had trust in Prime Minister Tihomir Oreskovic.

The statement came after Oreskovic called on his two deputy premiers to resign over growing disputes within the fragile right-wing coalition, which has barely functioned since it took power in January.

Deputy premier Tomislav Karamarko, head of the HDZ party which dominates the government, refused to quit and said either fresh elections or a "reconfiguring" in parliament were now the only solutions.

"Oreskovic does not enjoy our trust," said Karamarko, whose party leadership is due to meet on Saturday to discuss further moves.

Oreskovic had earlier called for the resignations of Karamarko and his other deputy, Bozo Petrov, who leads the coalition's junior party Most.

Karamarko faces a no-confidence vote by June 18 over an alleged conflict of interest, and Petrov said last week that his party would back the vote if Karamarko does not step down.

"It is clear to everyone that the current political situation has started to jeopardise national interests," Oreskovic told reporters.

While Karamarko dismissed the call for his resignation, Petrov said he was "ready to quit if that would help stabilise the country," but the final decision would be made by his party.

Early elections would delay the implementation of badly-needed reforms in the European Union's newest member, whose economy remains one of the poorest performers in the 28-nation bloc.

Two days ago Croatia suspended the issuing of its eurobonds, with the finance ministry citing "domestic political uncertainties" as the reason.

Last month a local newspaper published a contract showing that a lobbyist for Hungary's oil group MOL, which is in dispute with Croatia over its Croatia's national oil group INA, paid Karamarko's wife for consulting services between 2013 and 2015.

Karamarko acknowledged the existence of the contract but has denied any wrongdoing.

The opposition Social Democrats nevertheless called for the no-confidence vote, and a national watchdog is also probing the affair.

The Croatian government and MOL, hold 44.8 and a 49 percent stakes respectively in INA, and are in arbitration, notably over how the company is managed.