The International Monetary Fund has announced that its executive board has approved a 3 year arrangement under the extended fund facility for Portugal in the amount of EUR 26 billion IMF special drawing right in support of Portugal's economic recovery.

This front loaded program makes EUR 6.1 billion immediately available to Portugal from the IMF. In 2011, total IMF financing will amount to about EUR 12.6 billion and will be partnered with about EUR 25.2 billion committed by the European Union.

Mr John Lipsky acting MD of IMF said that "The Portuguese authorities have put forward a program that is economically well balanced and has growth and job creation at its center. It addresses the fundamental problem in Portugal, low growth, with a policy mix based on restoring competitiveness through structural reforms, ensuring a balanced fiscal consolidation path, and stabilizing the financial sector."

He held that the latest IMF move to support Portugal will contribute to the broad international effort to help foster stability to the Euro Area and secure recovery in the global economy.

Established in 1974, the EFF mechanism is typically three years in duration and aims to provide assistance to countries experiencing serious medium term payments imbalances due to structural impediments in production and trade.

(Sourced from www.xinhuanet.com)