IMF must stay, Grexit risk not over: EU bailout chief

Greece cannot remove the IMF from its economic bailout, the head of the EU's rescue fund said Sunday, adding that the possibility of a Greek eurozone exit remains if reforms are neglected.

"There has to be a financial contribution because the IMF, according to the ESM Treaty and to the agreement in the July summit, should be part of the programme also financially," Klaus Regling, head of the European Stability Mechanism, told To Vima weekly.

Greek Prime Minister Alexis Tsipras last week argued that the global lender's participation was "not necessary" in the country's third bailout, highlighting the International Monetary Fund's "unconstructive" position in demanding tough reforms and guarantees.

But Regling warned Sunday: "If the IMF decides not to participate it could be a big problem." "My assumption is that the IMF will participate," he said, adding that the contribution "is likely to be small."