FXstreet.com (Barcelona) - The EU, ECB and IMF officials announced today that Portugal would be granted an additional year to implement spending cuts required by the bailout program and gave the go-ahead for releasing the next, 2 billion euro tranche of aid for the country.

The Troika concluded their seventh review of the Portuguese rescue program today and decided that due to the recent deterioration of the country's economic outlook, the deadline for implementing spending cuts should be extended.

International lenders predict that the Portuguese economy will contract by 2.3% in 2013, which is a much worse outlook than the 1% decrease estimated during the review conducted in November 2012.