Noonan backs Lagarde for second term as International Monetary Fund chief

Christine Lagarde garnered strong backing from Europe Thursday for a second mandate as International Monetary Fund managing director.

The chancellor nominated the former French finance minister for another four year as head of the Washington-based organisation, saying she was an outstanding leader who had the vision “to help steer the global economy through the years ahead”.

Two years later, Chirac’s successor Nicolas Sarkozy named her agriculture minister, and shortly after switched her to the finance portfolio in 2007, making her the first woman named to the post which she held 2011, a record longevity.

The IMF move gave her a powerful seat inside the closed circle of the world’s leaders – where women are notable by their absence – but also responsibility for handling Greece’s debt crisis that threatened the whole European economy. “I have the highest regard for her. I think she’s done a great job”. The sister organization, the World Bank, has until recently typically been led by an American. The IMF board has reaffirmed its confidence in Lagarde’s ability to effectively carry out her duties. That’s “something that markets do not like, uncertainty, not knowing exactly what the policy is, not knowing exactly against what the renminbi is going to be valued”, she said during a panel at the World Economic Forum in Davos, Switzerland, referring to the currency that’s also called the yuan.

Lagarde’s renewal nevertheless faces a personal legal challenge: She could stand trial in France over her role in a banking scandal that predates her arrival at the International Monetary Fund.

On Wednesday the French press reported that Paris could support Ivory Coast-born French banker Tidjane Thiam as a replacement if she were not to run.

Speaking about China’s economic slowdown, Ms Lagarde said the country needed to refine its communication on reforms it was taking and its market policies.

“I’ll be waiting before I say anything about that”, she said.

“I’ve had the honor of receiving support since the opening of the [IMF’s nomination] procedure”, she said in the interview with French TV.