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The IMF Board assists Georgieva to continue as Managing Director

The IMF’s board also alleged that it chose to keep Crystallinage Orgieva as managing director of the institution and put pressure on World Bank staff when she was CEO of China. Nevertheless, she said she had “complete confidence” in her ability to carry out her responsibilities. advantage.

The announcement followed the IMF Board’s marathon meeting. The IMF Board struggled for several days to reach an agreement on the fate of Georgieva. Sharp division Appeared among the 24 directors.

France, Germany, Italy, United Kingdom Alignment While advocating for her alongside China and Russia, the two largest shareholders of the fund, the United States and Japan, were more resistant and called for a firm review. However, consensus for Georgieva to fulfill her term emerged on Monday after further deliberations.

In a statement released Monday night, the IMF Board said in a World Bank flagship report that evidence that Georgieva played an “inappropriate” role in China’s rankings was “conclusive.” It was not proven. “

“After reviewing all the evidence presented, the board reaffirms its full confidence in the leadership of the managing director and the ability to continue to perform her duties effectively. The board reaffirms the IMF’s highest level. We trust the Managing Director’s commitment to maintaining a level of governance and integrity. “

Have Georgieva repetition Rejected The fraud was accused of artificially boosting China’s placement in the 2018 edition of the World Bank’s widely followed Doing Business Annual Report while in control of the World Bank.

Her alleged efforts were commissioned by the World Bank last month and detailed in a report written by a representative of the law firm Wilmer Hale. The IMF Board met eight times to discuss this issue, including two “extensive” meetings between Wilmer Hale’s lawyer and Georgieva.

This decision was made at the beginning of the IMF’s annual meeting with the World Bank and began this week under a cloud of uncertainty as to whether Georgieva would survive. She will attend several events on Monday and will speak at several other events in the coming days.

On Monday, US Treasury Secretary Janet Yellen reported that the World Bank “raised legitimate issues and concerns,” but the United States “has no further direct evidence of the role of managing director.” I told her. The basis for change in IMF leadership. “

However, Yellen seems to have notified Georgieva, telling the IMF’s chief that the Treasury “monitors, closely follows up, and evaluates new facts and discoveries,” the episode said. We need to be vigilant to protect it. ” Banks and endowments. ”

President Joe Biden’s administration has also pledged to promote changes at the IMF and the World Bank to prevent further cases of possible operations. This suggests that the IMF Board will also consider it.

“The United States needs to take proactive steps to enhance the integrity and reliability of its data at the IMF, and agencies and their leadership should be transparent and whistleblower protection around policy, research and analysis. We believe we need to renew our commitment to maintain, “said the Treasury.

The Biden administration’s decision not to insist on the expulsion of Georgieva caused immediate opposition from the Republicans in parliament.

“This decision is badly reflected in US leadership at the IMF,” said Patrick McHenry, a top Republican member of the House Financial Services Commission. “Republicans and Democrats in Congress were wary of investigating Mr Georgieva’s actions. Pressure from other nations that the administration wants to ignore these bipartisan concerns and wipe out this scandal under the rug. It’s shocking to succumb to. “

In a statement released Monday, Georgieva expressed “unwavering support for independence and integrity” of the World Bank and the IMF.

“After a comprehensive and impartial review of the facts, I am pleased that the IMF Board has agreed that the allegations are groundless,” she said. “I would like to thank the Board for expressing my complete confidence in my leadership. Trust and integrity are the foundation of a multinational corporation that I have been faithfully serving for over 40 years.

“This was clearly a difficult episode for me,” she added.

The European government has chosen to join the Bulgarian Georgieva in the IMF in 2019 after running the World Bank for two years. She joined as an environmental economist in 1993 and left to work for the European Commission in 2010. , Before rejoining the World Bank in 2017.

She replaced Christine Lagarde, who is currently Governor of the European Central Bank, and her appointment required the IMF to abolish the age limit set forth in the Fund’s Articles of Incorporation.

During her tenure, emerging and developing countries overcame the coronavirus pandemic, allocation Earlier this year, $ 650 billion in special drawing rights equivalent to newly coined money.

The IMF Board assists Georgieva to continue as Managing Director

Source link The IMF Board assists Georgieva to continue as Managing Director

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