France Backs Christine Lagarde for Second Term as IMF Chief

The remarks were made at a session at the World Economic Forum in Davos, seen in a video feed monitored by Reuters.

British finance minister George Osborne on Thursday tweeted that he was “delighted to nominate @Lagarde for new term as head of IMF”.

In December Lagarde was set to go on trial in France for failing to prevent an alleged €400 million fraud when she was French finance minister in 2008.

As the UK’s IMF governor, Mr Osborne recommended Ms Lagarde for the job in 2011 and has today formally nominated her for a second stint as the Fund’s boss.

“He or she will have an outstanding professional background, will have demonstrated the managerial and diplomatic skills needed to lead a global institution”, he said. Ms. Lagarde succeeded in negotiating a restructuring of Greek debt with the rest of the eurozone in 2012, but it wasn’t enough to allow the Greek government to return to financial markets.

The second major downside risk is commodity prices, she said, while the third risk is change in flow of capital with a significant impact on currencies in the emerging markets.

“If all of the institution’s state members wish me to continue, I am a candidate to do so”, she added in an interview from Davos. “I look forward to continuing to work with her”.

The finance ministry said an official letter was sent by Yoo Il-ho, the country’s top economic policymaker, to Lagarde on Thursday confirming Seoul’s support.

The IMF said the board aims to complete the selection process by early March. Lagarde has repeatedly pleaded her innocence in the case.

The IMF chief listed the refugee crisis as an “economically related” “make-or-break” second concern.

“Mexico is not going to present a candidate and backs France’s nomination”, the source said.

The IMF will want to steer clear of controversy after Lagarde’s predecessor Dominique Strauss-Kahn was forced to resign following a sex scandal.