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IMF stands by Lagarde despite French investigation

Reuters/Kevin Lamarque
Text by: Philip Crowther
2 min

The International Monetary Fund (IMF) is standing by Christine Lagarde, its newly appointed head now under investigation in France.

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The IMF is still reeling from the scandal surrounding Lagarde’s predecessor, Dominique Strauss-Kahn.

Now it doesn’t appear rattled by the allegations and the French investigation into its new Managing Director.

The IMF quickly released its view after the news broke in Paris of an inquiry into charges that Lagarde abused her ministerial position to help a newly acquired ally of President Nicolas Sarkozy.

Its Executive Board says it is confident Lagarde can effectively carry out her duties.
That same board, made up of the IMF’s 24 executive directors, who chose Lagarde in the first place.

The threat of an investigation already existed at the time; still the IMF did choose the former French Finance Minister as its new boss, the first woman to lead the institution.

The threat isn’t an immediate one. This could be a long-drawn-out investigation.

But it is still embarrassing for the IMF and Lagarde, who went through mandatory ethics training upon her arrival in Washington and brought with her a very good reputation.

The IMF still believes Lagarde is the right person to bring a new beginning and she denies any misconduct.

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