European governments are inclined to support the FMI current director, Kristalina Georgieva, while the board of the credit organization prepares to make an imminent decision on his future after the accusations of improper actions during his time at the World Bank, according to European officials.
A French Finance Ministry official said a review of the case by the WilmerHale law firm did not provide details on precise elements to directly challenge Georgieva’s conduct, which is why France has supported her.
Another European official, who asked not to be named, said that Countries like France and the United Kingdom are among those who continue to support the head of the IMF because they do not see clear evidence against her.
Martín Guzmán arrives in Washington to negotiate the debt with a questioned Georgieva
The executive board, made up of 24 directors representing 190 member countries, could make a decision as early as Monday to prevent the crisis from affecting the credibility of the International Monetary Fund as a global lender. Conversations with WilmerHale on Sunday afternoon lasted several hours, according to a person familiar with the matter who spoke on condition of anonymity.
Politics will play an important role in Georgieva’s fate, and the outcome will likely depend on the European support she ends up receiving should the United States push for her removal.
Bloomberg reported last week that US Treasury officials were debating whether the Biden Administration should ask the Bulgarian citizen to resign on ethical grounds. A Treasury spokeswoman said the department will make a decision once the review is complete.
Countdown to Georgieva: IMF will decide “very soon” if she continues in her post
While the US is the largest shareholder in the IMF, France has traditionally had a great influence on the choice of managing director. Five IMF directors have been French, and even when the country did not get the top job, it played a key role in determining who got it..
The US decision to challenge France for IMF leadership could reignite tensions between the two nations, following recent disagreements over a defense pact with the UK and Australia, which meant that the latter country waived a contract. submarine billionaire with France.
IMF board members are discussing an audit the law firm conducted for the World Bank, based on a review of 80,000 documents and more than 30 interviews.
Georgieva’s situation at the IMF complicates and the government’s concern increases
The revision accuses Georgieva of pressuring staff to manipulate annual report data “Doing Business” to benefit China when she was one of the top development bank officials. Georgieva, who joined the IMF in 2019, has repeatedly denied any wrongdoing.
France wants the decision on the managing director’s future to be made very soon, the Finance Ministry official said, a position that Germany also shares.
What would make Europe’s job in defending Georgieva more difficult is for more damaging details to come to light that would make her a political drag, according to two Italian officials who said your government supports the managing director so far.
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