Lagarde makes bid for second term as International Monetary Fund head

Christine Lagarde, Managing Director of the International Monetary Fund (IMF) attends the session “The Global Economic Outlook” during the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland January 23, 2016.

A replacement is now being sourced to occupy the seat according to the Dean of the Executive Board of the International Monetary Fund (IMF), Mr. Aleksei Mozhin.

“I have a very close working relationship with her, (and) the highest regard for her”, Lew said.

Osborne’s backing for Lagarde in 2011 was considered a major coup by her supporters along with the support from German finance minister, Wolfgang Schäuble.

No other names have yet been raised but nominations remain open until 10 February and its executive board plans to make a decision by 3 March.

The IMF boss has said she would appeal against the move.

As concerns over a slowdown in the world’s second-largest economy roil markets, Fang Xinghai, from China’s Central Leading Group for Financial and Economic Affairs, said Thursday: “We can not afford to let growth rate to fall too sharply, because that would ignite a lot of financial problems inside China”.

Spain will also back Lagarde and nominate her for a second term, an official source at the country’s Economy Ministry said on Thursday.

“I was honoured to receive from the start of the process the backing”, said Lagarde.

Guiding the Fund through the successful rescues of Ireland, Portugal and Cyprus, and the still-troubled bailouts of Greece and Ukraine, Lagarde has garnered deep respect in the global financial community.

The IMF board has reiterated its confidence in Lagarde and she has denied any wrongdoing in the case. “I actually think that what she said earlier this week is right: There are a lot of countries in the world that think they ought to be part of this conversation”.

Ms. Lagarde over the past five years has sought to pull emerging markets further into the IMF’s fold, seeing their enfranchisement as critical to ensuring the fund’s influence on their policies.