IMF releases 2.9 billion euros rescue funding to Portugal

WASHINGTON, Dec. 19 (Xinhua) -- The International Monetary Fund (IMF) announced on Monday that its Executive Board had completed the second review of Portugal's performance under a three-year arrangement under the Extended Fund Facility (EFF), enabling the immediate disbursement of rescue funding in the amount of special drawing right (SDR) 2.425 billion, about 2.9 billion euros, to the nation.

This brought the total disbursements under the EFF to SDR 11. 503 billion, about 13.6 billion euros, the IMF said in a statement.

The EFF for Portugal, which was approved in May 2011, was part of a global package of financing with the European Union amounting to 78 billion euros over three years in support of Portugal's economic recovery.

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