IMF releases 2.9 bn euros to Portugal

The International Monetary Fund said Monday it would release 2.9 billion euros ($3.8 billion) to Portugal in the newest installment of the country’s huge rescue loan.

The release follows the second IMF formal review of Portugal’s progress on budget austerity and economic reforms under the 78-billion-euro IMF-European Union bailout program launched last May.

Last week the government announced it was well below the ceiling for the fiscal deficit set under the IMF-EU program.

The government headed by Pedro Passos Coelho said the deficit would likely not exceed 4.5 percent of output this year, sharply below the maximum 5.9 percent set by creditors.

Last year, the deficit hit 9.8 percent of gross domestic product.