Doing business: Kristalina Georgieva receives her retention at the head of the IMF

Bulgarian Kristalina Georgieva defended her position as managing director of the IMF, receiving the support of the institution’s board of directors last night, Monday, October 11, 2021, but deeply distressed by these weeks of investigations.

The question of keeping 68-year-old Kristalina Georgieva as head of the International Monetary Fund has been raised since the publication of the findings of an investigation by the law firm WilmerHale on 16 September, carried out at the request of the committee. World Bank ethics.

The leader was accused of manipulating a report to favor China, a fact he has always denied.

“The Board of Directors considered that the information presented during its review does not conclusively demonstrate that the Chief Executive Officer played an improper role in relation to the ‘Doing Business 2018’ report when she was Chief Executive Officer of the World Bank ,” according to an IMF press release.

“After examining all the evidence presented, the Board of Management reaffirms its full confidence in the leadership and the Director General’s ability to effectively continue his/her duties”, the text adds.

The announcement comes as the IMF and World Bank begin their fall meeting on Monday against the backdrop of their integrity issue.

The governing body says they believe in Kristalina Georgieva’s “commitment” to “maintaining the best standards of governance and integrity at the IMF”.

However, the Board of Directors plans to meet in the future to “examine possible additional measures aimed at ensuring the firm’s strictness” in this area.

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“Episode Difficult”

For her part, Kristalina Georgieva underlined that the case was “a difficult episode on a personal level”, while confirming that the facts were “unfounded”.

“As the IMF meets this week, I am honored to lead such a talented team that works tirelessly to tackle the world’s biggest challenges, from the fight against Covid-19 to climate change.” Till the fight and fight against economic inequalities,” she also responded.

The matter deeply divided the 24 members of the board of directors.

While France, the United Kingdom and Europe have more widely expressed their support for Kristalina Georgieva, the United States has been more reluctant to renew her confidence.

In a separate statement, US Treasury Secretary Janet Yellen said she spoke with Kristalina Georgieva yesterday, Monday, October 11, 2021, “to discuss the serious issues raised by this investigation” that raised “valid concerns”. raised.

He stressed that his priority was to “maintain the integrity and credibility of the World Bank and the IMF”.

However, like other members of the IMF Executive Board, the Treasury recognized that “in the absence of additional direct evidence relating to the role of the Managing Director, there is no basis for changing the direction of the Fund.

The IMF said it conducted a “comprehensive” and “objective” review of the matter, meeting a total of eight times.

During a meeting with the council, Kristalina Georgieva condemned the “inaccuracies and misconceptions made by the authors of the report”.

At the same time, it was supported by former World Bank officials and renowned economists including Nobel laureate Joseph Stiglitz.

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The Treasury warned Monday evening that it would assess “everything new.”

Washington also believes that “proactive measures should be taken to strengthen the integrity and reliability of data at the International Monetary Fund.”

For its part, the IMF’s executive board insisted that the World Bank’s investigation into possible professional misconduct by employees in the Doing Business Report case was “in progress”.

Kristalina Georgieva 1. took over as the head of the fundIs October 2019, replacing Frenchman Christine Lagarde, who was appointed to the European Central Bank.

Then she was the only candidate for the post.

According to the division of roles inherited from the creation of the Bretton Woods institutions, the Fund is traditionally headed by a European while the World Bank is currently held by an American, David Malpass.

In 2019, however, IMF officials had to change the statute to confirm the appointment of Kristalina Georgieva, who was over the age limit, then set at 65.

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