The International Monetary Fund on Wednesday approved a 5.17 billion euro ($6.79 billion) loan installment for Portugal after “good progress” in the country’s economic program.
The money was made available after the IMF executive board reviewed reforms that are part of a three-year 27.6 billion euro loan program granted Portugal in May 2011, the Fund said in a statement.
“Good progress has been made on implementing policies under the program and early signs indicate that the required economic adjustment is taking place,” said Nemat Shafik, IMF deputy managing director and acting board chair.
“Given the difficult external and internal environment, strong program implementation remains essential to ensure program success, rebuild market confidence, and restore growth,” she added.
Including the latest tranche, the Washington-based global lender has provided 18.56 billion euros to Portugal, which last year joined Greece and Ireland in European Union-IMF bailout programs.
Portugal received a three-year EU-IMF package worth up to 78 billion euros in return for a commitment to reform its economy and impose austerity measures.