Thursday, January 21, 2016 2:34 pm
International Monetary Fund (IMF), says it has opened selection process for its top job and will begin accepting nominations on Thursday. The only snag however is that the incumbent, Christine Lagarde is interested in holding the post for another five years, her second term.
IMF Executive Board said in a statement in Washington on Thursday that it had adopted an open, merit-based, and transparent process for the selection of the managing director.
The statement, signed by IMF executive board member, Aleksei Mozhin, said the method of selection was similar to the one used in the previous round.
“Individuals may be nominated by a Fund governor or executive director. Like we did in 2011, we aim to reach a decision by consensus”, Mozhin said.
But IMF’s Managing Director, Christine Lagarde says she is open to another term.
Lagarde’s initial five-year term as managing director expires on July 5 and Mozhin said he expects the board to complete its selection process by early March.
Lagarde, a former French finance minister, was elected in 2011 after competing against Mexican Central Bank governor Augustin Carstens.
Lagarde replaced Dominique Strauss-Kahn, who was forced to resign the top IMF job amid a sexual assault scandal.
Lagarde, who is well regarded among international leaders, said in October she was “prepared to serve” another term but that was up to the Fund’s members to decide.
So far, no challengers have emerged for the top IMF job.
One potential complication is that a French court in December ordered Lagarde to face trial for negligence when she served as France’s finance minister.
Lagarde was alleged to have played a role in a payout of some 400 million euros ($434 million) to businessman Bernard Tapie under questionable circumstances.
Lagarde has vowed to appeal the trial order and has said she acted in the best interests of the French state and in full compliance with the law.
The IMF board has reaffirmed its confidence in Lagarde’s ability to effectively carry out her duties.
During her tenure as head of the Fund, a sovereign debt crisis in Europe eased, loan programmes to debt-laden Greece have been extended, and the Chinese yuan was added to the Fund’s benchmark currency basket.
The fund, last year, also won approval by the U.S. Congress of a landmark reform programme that shifted more voting power to China and other key emerging markets.