* IMF short of resources after Greek bailout
* Unclear if Greek problems over, implementation uncertain
* IMF funds could be raised through doubled SDR issuance
* Global bank levy less important than better regulation
* Measures to counteract fiscal tightening needed (Adds quote on Greece)
By David Milliken
BUSAN, South Korea, June 4 (Reuters) - The IMF needs more funds after supporting Greece's bailout and should "very significantly" increase the amount of special drawing rights, the head of the Fund's policy-steering committee said on Friday.
Egyptian finance minister Youssef Boutros-Ghali told Reuters that Greece's problems were not over yet and there were doubts about its ability to implement the reforms demanded by the IMF and European Union in return for a 110 billion euro ($135 billion) aid package.
"We are not out of the woods," he said in an interview. "The measures they have been required to implement are fairly tough. And there are in some areas doubts whether they are able to continue implementing such tough measures."
Boutros-Ghali is the first official from an emerging economy to head the IMF's International Monetary and Financial Committee, and said the Fund should raise money from members by issuing more SDRs, its de facto currency, instead of borrowing.
"If we are going to start including funds made available to Europe, then the IMF is not properly resourced," he said.
"We need to increase SDRs very significantly. But we also need to shift the structure of resources from mostly borrowing and some SDRs to mostly SDRs," he continued, adding that members had been talking about a doubling of the SDR allocation.
Two allocations of SDRs last year -- the first in 30 years -- increased the International Monetary Fund's stock of SDRs almost 10-fold to total about SDR 204 billion ($313 billion). China has suggested emerging economies buy more SDRs in return for increased voting rights.
G20 finance ministers and central bank chiefs are meeting in the South Korean port city of Busan to lay the groundwork for G20 leaders' meetings in Toronto on June 26-27 and in Seoul in November.
Boutros-Ghali said that he was working on boosting emerging economies voting rights at the IMF, but that it was unlikely a deal would be reached by the Seoul summit -- an informal deadline set by world leaders.
"It's not easy and it's not straightforward. Given the problems I think there's a slightly less than 50 percent chance that it will succeed," he said.
SDRs are made up of a basket of dollars, euros, yen and pounds, and Boutros-Ghali said diversification was needed over the long run.
"I don't question the need to widen the basket. What we have to take into account is that a currency (to be added to the basket) is broadly available ... and traded according to transparent mechanisms."
DRESSING UP FOR DINNER?
Brazil has suggested the basket be widened to include its real and the Chinese yuan, and Boutros-Ghali said that this prospect may provide a gentle nudge in the direction of making China's currency more freely traded.
"As long as you are not required to dress up properly and you are not invited for a dinner, you do not dress up. The minute you are invited you dress up."
The United States has repeatedly called on China to allow the yuan to move more freely and appreciate against the dollar to boost demand for U.S. goods.
But Boutros-Ghali said the currency should not be treated in isolation as credit conditions and government fiscal policy were also important drivers of any country's domestic demand.
Nonetheless, countries which ran current account surpluses needed to act to offset the adverse effect on global growth of U.S. and European efforts to rein in budget deficits, he added.
Boutros-Ghali played down the likelihood and importance of a G20 agreement over a global bank tax -- supported by the United States and the EU, but rejected by Canada and Brazil.
"Will countries agree on the principle first and then the level of the tax? No," he said.
"The bank levy is one of many measures and certainly not the most important one. Having good regulatory infrastructure that watches over leverage, that watches over risk management, that watches over banks across the world, is a lot more important." (Reporting by David Milliken, editing by Tomasz Janowski)