The International Monetary Fund has released 3.98 billion Euros ($5.4 billion) as part of a three-year bailout to Portugal, the IMF announced Tuesday. The IMF will provide a total of 27.27 billion Euros of the 78-billion-euro bailout agreed with the European Union. The IMF, EU and European Central Bank gave a green light in August to a second loan tranche to Portugal, issuing a positive assessment of its performance in applying the bailout programme, according to a report of the German Press Agency (DPA). Lisbon has adopted tough austerity policies in an attempt to cut its budget deficit to 5.9 per cent of gross domestic product this year, from 9.1 per cent in 2010. Portugal has made "good progress in implementing policies," IMF representative Nemat Shafik said. Portugal became the third eurozone country after Greece and Ireland to be rescued by the EU and IMF.
