Big countries not at risk from Greek crisis, says IMF chief

The Greek crisis could spread through Europe but big countries do not face any real threat, according to the head of the International Monetary Fund.

Dominique Strauss-Kahn said the Continent should "remain vigilant" to prevent other countries' financial systems being dragged down - although he said there was no real risk for France and Germany or other big countries.

"There is always a risk of contagion. "Portugal has been mentioned, but it is already taking measures and the other countries are in a much more solid situation," he told Le Parisien newspaper.

Strauss-Kahn said that under the terms of IMF's bailout for Greece, the country's recovery plan will be monitored every three months. He warned that if the measures were not taken the international community "might have to step aside".

Renewed selling gripped eurozone financial markets yesterday as concerns mounted that the 110 billion (£94 million) EU/IMF rescue package for Greece would not stop a debt crisis spreading to other weak eurozone members.

Strauss-Kahn said the aid plan was intended to save Greece from its crippling levels of debt and weak competitiveness.

"It was in the edge of bankruptcy and soon it would not have been able to pay its civil servants," he said.

He dismissed any suggestions of Greece or any other European country pulling out of the eurozone, saying that any such move would bring the "end of the euro".