Christine Lagarde
WASHINGTON, July 18 (NNN-XINHUA) — International Monetary Fund (IMF) Executive Board said that it will initiate promptly the process of selecting the next managing director, after Christine Lagarde announced her resignation from the IMF position with effect from Sept. 12, 2019.
Lagarde was nominated for the presidency of the European Central Bank (ECB) two weeks ago, as part of the European Union (EU) leaders’ agreement on the future leadership of top EU institutions. She then decided to temporarily step down from the IMF leadership during the nomination period.
“With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund, as it will expedite the selection process for my successor,” Lagarde said in a statement.
“Today the IMF Executive Board accepted Managing Director Christine Lagarde’s resignation from the Fund with effect from September 12, 2019,” the Executive Board said in a statement. “We would like to express our greatest appreciation for all that Managing Director Lagarde has done for the institution. Her legacy of achievements has made a lasting imprint on the Fund.”
“Under her guidance, the Fund successfully helped its members navigate a complex and unprecedented set of challenges, including the impact of the global financial crisis and its aftershocks,” the statement said.
“With this decision by Managing Director Lagarde, the IMF Executive Board will initiate promptly the process of selecting the next Managing Director and will communicate in a timely fashion,” it said.
The position of IMF chief has always been held by Europeans while the head of the World Bank has traditionally been American, an informal arrangement that has stayed in place for over seven decades.
Earlier this year, David Malpass, former undersecretary for international affairs at the U.S. Treasury Department, was chosen by U.S. President Donald Trump as a candidate to lead the World Bank Group, and he took office in April after a campaign without competition.
The managing director is selected by the IMF’s 24-member executive board, which is dominated by advanced economies.
Lagarde, a 63-year-old French national, would be the first woman to lead the ECB. She is set to replace Mario Draghi, whose eight-year term ends on Oct. 31.
On July 5, 2011, Lagarde became the 11th managing director of the IMF, and the first woman to hold this position. She was elected to a second five-year term as the IMF managing director, which started on July 5, 2016. Prior to joining the IMF, Lagarde served as France’s finance minister from 2007 to 2011. — NNN-XINHUA
