London, April 18 (IANS) The crisis-hit euro is teetering on the brink of collapse, the International Monetary Fund (IMF) has said.

In a significant vote of no-confidence, Tuesday's report from the global financial organisation admitted the troubled European single currency had flaws and was at risk of a disorderly default and exit by a euro area member.

And it warned that a euro meltdown could be even more devastating for the world economy than the 2008 credit crunch, the express.co.uk reported.

The admission in the World Economic Outlook from the IMF came amid renewed fears that Spain could soon follow Greece, Portugal and Ireland in accepting a multi-billion pound international bail-out.

The report warned: The potential consequences of a disorderly default and exit by a euro area member are unpredictable and thus not possible to map into a specific scenario.

If such an event occurs, it is possible that other euro area economies perceived to have similar risk characteristics would come under severe pressure as well, with a full-blown panic in financial markets and depositor flight from several banking systems. It added: Under these circumstances, a break-up of the euro area could not be ruled out.