Germany, Britain back Lagarde for second term as International Monetary Fund head

But Lagarde’s popularity among numerous fund’s most powerful members-including emerging markets-and her signal last October that she is open to serving a second term is driving many fund watchers to call the selection all but over.

The IMF on Thursday opens formal nominations for the next term of managing director, with incumbent Christine Lagarde seen as the leading candidate despite possibly facing a trial in France.

She had proven to be a “far-sighted and successful crisis manager in hard times”, the German finance ministry in Berlin said in a statement.

Fang Xinghai, the vice-chairman of China’s securities regulator, said at the same panel that “in terms of communication, we should do a better job”.

Ms. Lagarde’s term as International Monetary Fund chief came at the height of the eurozone’s sovereign-debt crisis. Britain and Germany gave key backing Thursday, and Lagarde said she had also received support from China, South Korea and Mexico.

Treasury Secretary Jacob J Lew, in an interview on CNBC on Thursday, praised Lagarde but stopped short of giving her the US’s official endorsement.

Despite this controversy, commentators say she has no obvious challengers for the job.

Ms. Lagarde, a former French finance minister, took over the job in July 2011, replacing Dominique Strauss-Kahn after the French politician was arrested in NY on charges of sexually assaulting hotel maid Nafissatou Diallo.

Prosecutors said Lagarde, at the time Sarkozy’s finance minister, referred the long-running case to arbitration and signed off the payout.

No other names have so far been touted as potential candidates, but the International Monetary Fund will be taking nominations through February 10 with a view to its executive board making a decision by March 3.

She joined the global law firm Baker & McKenzie in Paris aged 25 after completing a master’s degree in English and labour law, and quickly rose to the top of the Chicago-based firm before entering politics.