A senior official of the European Union (EU) said Tuesday Portugal was making steady progress in its efforts to restore public finance and boost growth and jobs hours.

Olli Rehn, EU's economic and monetary affairs commissioner, made the comments hours after international lenders announced that economic reforms in the debt-laden country remained on track despite great economic challenges.

"As the third Troika -- the EU, the International Monetary Fund (IMF) and the European Central Bank (ECB) -- review mission to Portugal comes to a close, I welcome the conclusion that the program is on track," Rehn said in a statement.

Portugal is making steady progress to restore fiscal sustainability, ensure a gradual deleveraging of the banking sector and advance structural reforms to enhance competitiveness and boost growth and jobs, he said.

"It is encouraging that long-standing weaknesses in the wider public sector are being addressed and that imbalances have started to correct, as shown, for instance, by a declining trade deficit," Rehn added.

Boosting competitiveness and rebalancing the economy towards the tradable sector requires reforms in both labor and product markets, he said. "I count on the commitment of the Portuguese authorities to continue to address the remaining challenges with determination and step up efforts where necessary."

"This is an ambitious, but realistic, program," said Rehn, who pointed to the "broad political support" the program enjoys as "a key asset for its success."

Rehn also expected most of Portugal's economic adjustment to be completed in 2011 and 2012, when the economy should start expanding again.

"The European Commission will continue to support Portugal in implementing the program effectively, with the aim of bringing its economy back on the road to recovery," said Rehn.