IMF board to resume debate over Georgieva’s future later Monday

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WASHINGTON, Oct 11 (Businesshala) – The International Monetary Fund’s 24-member executive board is set to resume later on Monday, after starting talks about data-rigging allegations against Managing Director Kristalina Georgieva. Resolved to resolve the issue “very soon”. An acquaintance of the matter said.

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France and other European governments on Friday backed the Bulgarian economist for completing his term as IMF chief, while US officials and others used different accounts about data irregularities in the World Bank’s “Doing Business” report. Had asked for more time to study.

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Georgieva strongly denied The allegations, which date back to 2017, when she was the chief executive of the World Bank. She became the Managing Director of IMF in October, 2019.

One investigation report Georgieva and other senior officials applied “undue pressure” on bank employees, such as Bank Beijing, to change data to boost China’s ranking in the “Doing Business” report prepared for the World Bank board by law firm WilmerHale. was seeking support. A major capital increase.

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The scandal threatens to overshadow the high-profile fall meetings of the IMF and World Bank this week, where Georgieva plays a major role in discussions with World Bank President David Malpass on the global recovery from the COVID-19 pandemic, debt relief are going to perform. and efforts to accelerate vaccination.

mixed scene

According to sources familiar with the matter, who spoke on condition of anonymity, France and other European governments had pressed for a speedy resolution ahead of the meetings and urged other shareholders to support Georgieva.

Meanwhile, the United States and Japan, the fund’s two biggest shareholders, pushed for a more thorough review and cautioned against premature reaffirmation of confidence in the IMF leader, one of the sources said.

The source said the board generally works by consensus, but can take votes if differences between shareholders cannot be resolved.

A second source expressed confidence that Georgieva would eventually be approved given the strong support from shareholders in Europe, the Middle East and Africa, but said it was unclear whether US concerns were satisfied.

Monday’s meeting, initially scheduled to begin at 10 a.m. EDT (1400 GMT) was postponed for hours as board members consulted with their governments after another marathon meeting that ended late Sunday.

Malpass declined to comment on the IMF process on Monday, but said the World Bank was working to improve the integrity of its research, with its chief economist Carmen Reinhart being part of the bank’s 10-person senior management team. was involved in making.

“We have taken several steps to build morale,” Malpass said. “I met with the economics staff and Carmen and her larger economics staff last week, and re-committed myself and the bank to the development agenda that is the bank’s mission.”

Sudanese-British billionaire Mo Ibrahim, who heads a foundation focused on leadership in Africa, on Sunday called Georgieva a “Highly Competent Leader” And said it would be a shame if she “falls victim to false accusations of favoring China.”

He said the allegations against Georgieva were part of a geopolitical battle between the United States and China that posed “multilateralism and a potential threat to global institutions”.

Reporting by Andrea Schallal Additional reporting by David Lauder Editing by Paul Simao


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