IMF approves 838.8 million euro tranche to Portugal

WASHINGTON Wed Jan 16, 2013 9:42pm GMT

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WASHINGTON (Reuters) - The International Monetary Fund on Wednesday agreed to disburse the next loan tranche of 838.8 million euros (696.5 million pounds) to Portugal under the country's 78 billion euro international bailout.

The country's lender, including the IMF, European Union and European Central Bank, agreed in September to give Lisbon more time to meet the deficit targets under the rescue loan after austerity affected tax revenues that had been supposed to rise.

Despite the shortfall, the lenders have praised Portugal's efforts to implement tough spending cuts and raise taxes.

(Reporting By Lesley Wroughton; Editing by Sandra Maler)

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