IMF approves 3.98 bln euros disbursement to Portugal

The International Monetary Fund (IMF) completed the first review of Portugal's performance under an economic program supported by a 3-year 27.27 billion euro Extended Fund Facility (EFF), which would enable the "immediate" disbursement of about 3.98 billion euro, bringing total disbursements under the EFF to about 10.43 billion euro, the Fund announced here late Monday. According to the IMF, the EFF approved in May is part of a cooperative package of financing with the European Union amounting to 78 billion euros over three years. It entails exceptional access to IMF resources, amounting to 2,306 percent of Portugal's IMF quota, and was approved under the IMF's fast-track Emergency Financing Mechanism procedures. Deputy Managing Director and Acting Chair Nemat Shafik said in a statement in this regard that "the new government has signaled its strong commitment to the program, and good progress has been achieved on policy implementation." "While the external environment, with market pressures affecting several euro area countries and demand in export markets showing signs of slowing, has remained very difficult, the recent policy action by the European Council to strengthen the euro area crisis management framework has increased the chances of success," Shafik added.