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December 7, 2021

Global fight for IMF top job

The institution says it will try to select a new managing director by June 3, after Dominique Strauss Kahn resigned.

Britain backs Christine Lagarde for IMF job.

WASHINGTON – The dean of the IMF executive board, Shakour Shaalan, announced Friday that the institution adopted a procedure to select its next managing director, the CNN reports.  In a statement, Shaalan said the board will meet with final candidates in Washington “with the objective of completing the selection process by June 30, 2011.” Angela Merkel, the German chancellor, is among European leaders who favour a European for the post, but emerging economies are expected to fight hard for a chance to increase their influence on the global stage, the BBC informs.

The position became vacant after Dominique Strauss-Kahn resigned so he could fight sexual assault charges. The list of names from European countries include the current French Finance Minister, Christine Lagarde, and Germany’s former banking chief, Axel Weber. From developing countries, South Africa’s Finance Minister, Trevor Manuel, and Turkey’s former Minister of Economic Affairs, Kemal Dervis, have been widely mentioned, but Mr Dervis has now ruled himself out.

UK Chancellor George Osborne is to formally nominate Christine Lagarde for the post. He said the French economy minister was “the outstanding candidate”.  In a statement Osborne said Ms Lagarde had “shown real international leadership as chair of the G20 finance ministers this year”. Lagarde has already won praise for her credentials from the interim head of the IMF, John Lipsky, the Italian government, the Swedish finance minister and Jean-Claude Juncker, who chairs the eurozone committee of finance ministers.

Germany’s Finance Minister Wolfgang Schaeuble told the German weekly Bild am Sonntag that “Europe would have the best chance to secure the post again with Christine Lagarde, if she decides to run. Even before Strauss-Kahn’s resignation there had been much speculation that Mr Brown could take on the job, which the Frenchman was expected to vacate anyway in order to run for his country’s presidency.

South Africa and Australia have said the next managing director of the International Monetary Fund should be appointed on merit and not nationality.

Former IMF chief granted bail

Dominique Strauss-Kahn was released on bail from the Rikers Island jail Friday. A private security guard will monitor Strauss-Kahn around the clock at his own expense during his stay at the Manhattan apartment in the financial district, a source with knowledge of the bail agreement said.  Strauss-Kahn will stay with his wife, Anne Sinclair.

Strauss-Kahn faces two counts of criminal sexual act; two counts of sexual abuse; and one count each of attempt to commit rape, unlawful imprisonment and forcible touching.

Supreme Court Judge Michael Obus ordered the release of the 62-year-old economist Friday over the objection of the prosecution, which said he is a flight risk. The conditions of Strauss-Kahn’s release included he surrender his travel documents, submit to home detention, USD 1 million cash bail and USD 5 million bond. His next court appearance is set for June 6.

At the time, Strauss-Kahn was in the fourth year of a five-year term with the global financial institution and was paid USD 441,980 in 2010, according to the most recent annual report. He also got USD 79,000 and first-class travel for him and his family while he was on company business. On Friday, the IMF said that Strauss-Kahn, who resigned, will receive a USD 250,000 separation payment and a “modest annual pension” thereafter. We don’t disclose pension payments,” IMF spokesman William Murray said. “But it is well below the separation payment figure.”

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