Despite the widespread call from emerging economies for their candidate to head the International Monetary Fund (IMF), the IMF board announced on Tuesday that it has selected French Finance Minister Christine Lagarde for the position. With Lagarde clinching on the top job at the IMF; this keeps the international lender in the hands of a European at a time of growing concern over a possible Greek debt default.
“The executive board, after considering all relevant information on the candidacies, proceeded to select Ms. Lagarde by consensus,” the IMF said in a statement.
Christine Lagarde is the first woman to head the IMF when her five year term as a managing director begins on July 5. She is succeeding Dominique Strauss-Kahn, who resigned from the IMF in May to defend himself against charges of sexual assault against a New York hotel maid.
French President Nicolas Sarkozy called the news “a victory for France,” while Lagarde said she was “deeply honored.”
However it is learnt that the IMF will decide not to offer Lagarde a contract until the court makes a final decision in the former head, Strauss-Kahn?s case.
Sources: Times of India; REUTERS; Washington Post