Lagarde Set for Second Term as IMF chief

The International Monetary Fund executive board has nominated incumbent managing director Christine Lagarde for a further term in that post.

The IMF board’s dean, Aleksei Mozhin, said the fund plans to finalize the decision “as soon as possible”.

Christine Lagarde, has been nominated for a second five-year term at the helm.

“As in 2011, we are encouraged by the broad support she has secured among the Fund’s membership, including from the emerging economies”. Prosecutors dropped a criminal case amid inconsistencies in her testimony; Strauss-Kahn reached an undisclosed civil settlement with the woman. But her victory came amid criticism that the IMF’s top job should not be locked down by a European, as it has since the institution was created in 1944.

A French court said in December she will stand trial for “negligence” in relation to a settlement the French government reached with businessman Bernard Tapie during her time as finance minister.

Lagarde is fighting the trial order, insisting that she “acted in the interest of the state, conforming to the law”. The IMF board has reaffirmed its confidence in Lagarde’s ability to effectively carry out her duties.

The reforms made China the IMF’s third-largest shareholder and increased the voting rights for certain other emerging-market economies. She also played a lead role in fashioning an global bailout for Ukraine.

The 60 year old former French finance minister helped steer European fiscal policy during the 2007-2009 financial crisis.