The International Monetary Fund (IMF) had completed Portugal's 11th evaluation and would release a new tranche of 851 million euros (1.18 billion US dollars) in loan funds, local newspaper Daily News reported Friday.

The IMF board met Thursday to review whether Portugal was on track in implementing its adjustment program and approved austerity measures to cut its deficit to 2.5 percent of GDP in 2015, according to the report.

"The short-term macroeconomic outlook (in Portugal) has continued to improve and the program is on track, underpinned by a sizable budgetary over-performance in 2013," the IMF said in a post-meeting statement.

"The authorities remain committed to fiscal discipline and have fully specified the measures necessary to achieve the 2015 fiscal target," it said.

"Portugal, however, still needs to address important challenges, as large financing needs leave the country susceptible to market volatility, and remaining bottlenecks to growth and competitiveness risk delaying the necessary balancing of the economy," the statement said.

The latest tranche is part of a 78-billion-euro (108-billion-dollar) package the debt-laden country signed with its international lenders -- the European Commission, the IMF and the European Central Bank, in May 2011. Portugal will exit its bailout program in June this year as scheduled.