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The future of the balanced Georgieva IMF as Europe looks to the United States for clues

France plans to give Cristalina Georgieva assistance in meeting the IMF’s 24 board members on Friday to assess whether the fund’s managing director should be maintained as follows: increase. Allegations to challenge her ethics in Her previous job at the World Bank.

But on Thursday, Paris’ support has struck multilateral lenders over the past three weeks. Throw clouds at the IMF And the World Bank’s annual Washington, DC rally starting Monday.

Some EU countries and Britain have been waiting for instructions from the Biden administration as to whether Georgieva has lost US support, according to people familiar with the board’s debate.

“The fact that the board took five hours (Wednesday) and did not steer clearly shows how divided they are on this issue,” said a former IMF official. “When it comes to our relationship with the managing director, they try to get as close to consensus as possible .. I’m sure they want to put this off by next week, but that’s very much. It seems difficult. “

“As a powerful multilateral institution that fulfills an important mission in times of unprecedented crisis, we look forward to quickly resolving issues in a way that maintains the core strengths of the IMF and the World Bank,” Georgieva said in a statement Thursday. I am doing it. ” “

Georgieva has been accused Manipulating data in favor of China In the 2018 edition of the World Bank’s widely followed annual Doing Business report, while she was the CEO of the bank, she took the top position at the IMF in October 2019. She denied cheating and refused the accusation. She reiterated to the board on Wednesday.

The motion was filed in a report commissioned by the World Bank Board of Directors from law firm Wilmer Hale, who met with the IMF Board on Monday.

The bank’s board of directors Publish the report September 16th, hours after the bank said so Abandon Doing Business Report Due to ethical concerns about the behavior of former and serving board officials and staff involved in the preparation.

With the exception of Paris, Hungarian Treasury Minister said in favor of Georgieva this month that “the attack on her has a political background not found in international financial institutions.” Last weekend, a spokeswoman held by Georgieva issued a statement of support from the finance ministers of 16 African countries.

When asked about the issue at the end of last week, German Treasury spokeswoman Christina Wogatski said: As you know, Ms. Georgieva is the current IMF Chief and she has the opportunity to speak in this position. Germany does not anticipate it. “

An important question hanging in the EU capital is where Joe Biden and US Treasury Secretary Janet Yellen stand. Given the US 16.5% share of the fund’s voting rights, Washington has the greatest influence within the IMF.

“Many people are sitting on the fence until the Americans give their views,” said one familiar with the debate.

On Wednesday, a Treasury spokesperson pointed out that the Treasury promoted “thorough and fair accounting of all facts,” and the United States backed the IMF’s Georgieva leadership after this week’s board meeting. I didn’t say if I did.

The Treasury refused to comment further on Thursday.

According to fund officials, the IMF’s intention is to resolve issues at the board level before next week’s annual meeting of the fund. However, one former IMF official said it could be a difficult ambition to meet.

The departure of Georgieva caused a political headache in Europe, which has always claimed its position, but Washington traditionally appointed the President of the World Bank.

Bulgarian economists took over Christine Lagarde two years ago after a fierce battle between European capitals. With her appointment, the IMF had to abolish the age limit set forth in the Fund’s Articles of Incorporation.

But if she stays, the credibility of the fund will be “significantly diminished,” warned Anne Osborn, the former Deputy Managing Director of the IMF.

“The work of the entire institution will be devalued. That outlook alone should be enough for IMF politicians to find a new managing director who has no doubt about their commitment to work integrity,” she said. say. I have written At Project Syndicate on Thursday.

Additional report from Victor Mallet in Paris

The future of the balanced Georgieva IMF as Europe looks to the United States for clues

Source link The future of the balanced Georgieva IMF as Europe looks to the United States for clues

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