The International Monetary Fund Monday said it approved a fresh loan to Portugal after the country passed a monetary review in connection with its bailout program.

The IMF approved the disbursement of EUR1.48 billion after completing its fourth review of the Portuguese economy under an extended fund facility (EFF) arrangement with the government. With the release of fresh funds the total disbursements under the EFF arrangement will reach around EUR21.13 billion.

The EFF arrangement, approved in May last year, is part of a cooperative package of financing with the European Union amounting to EUR78 billion over three years. It entails exceptional access to IMF resources, amounting to 2,306 percent of Portugal's IMF quota.

"The authorities' strong program implementation, despite the difficult euro area environment, is commendable, and there are welcome signs of adjustment in the fiscal and external accounts," Nemat Shafik, Deputy Managing Director and Acting Chair at IMF, said.

Shafik said that Portugal's end-2012 fiscal target remains within reach, although risks to its attainment have increased on account of weaker revenue performance, requiring close monitoring of developments and continued efforts to strengthen tax compliance.

RTTNews