International Monetary Fund re-elects Lagarde to second five-year term

IMF Managing Director Christine Lagarde said on Friday that G20 finance ministers and central bank governors should focus on global economic spillovers from their policy decisions when they meet in Shanghai next week. “I don’t think so”, Lagarde said Friday in a speech.

Lagarde, 60, has headed the International Monetary Fund since 2011, when then Managing Director Dominique Strauss-Kahn left his post because of allegations on sexual harassment against him. The IMF said at the time she was the only person nominated and it would aim to complete the selection process quickly.

Lagarde still faces legal action in France.

The new term for Mrs. Lagarde will start on July 5. “The fund remains committed to its fundamental goal of helping to ensure global economic and financial stability through worldwide cooperation”. She faces charges of “negligence” over a financial settlement the French government reached with businessman Bernard Tapie when she was finance minister. She is the first woman to lead the global organisation, Xinhua news agency reported.

During her tenure, Lagarde has overseen the IMF’s handling of Europe’s sovereign debt crisis and steps by the International Monetary Fund to give a greater voice to emerging markets like China.

“During turbulent times in the global economy, Ms. Lagarde strengthened the Fund’s ability to support its members with policy advice, capacity building and financing”. Lagarde has repeatedly stated her innocence, and she promised to appeal the decision to try her.