France Backs Kristalina Georgieva as IMF Chief, Bloomberg Claims

Kristalina Georgieva receives France's support in determining the next candidate for managing director of the International Monetary Fund, Bloomberg reported.

According to the Financial Times, it is also among the last three on the restricted list from which the European Union chooses whom to raise for the vacant Christine Lagarde seat. The other two are Finland's central bank governor and former European Commissioner Olli Rehn and Dutchman and former Eurogroup chairman Jeroen Deiselblum.

The Frenchwoman is a candidate to head the European Central Bank this fall, and traditionally the IMF post has always gone to a European. The American has always run the World Bank, but the United States controls the largest block of voting rights in the fund, so its next leader must be acceptable to Washington.

Treasury Secretary Stephen Mnuchin said on July 18 that he did not follow this principle much. "No matter what the historical tradition, we have never won over that a US person will head the WB, and we do not take for granted that a European will head the IMF. Given this, we appreciate the support for David Malpas and will obviously work with all our partners to find the right one for the post. "

In April, Malpas was promoted to president of the World Bank (Georgieva is second in the institution's hierarchy - ed.) And received unanimous support from the EU and emerging economies. It was then commented that Europe did not dispute the principle that it would receive US approval for its IMF-led man in return.

The selection of the European candidate is coordinated by French Finance Minister Bruno Le Mer, and the aim is to have the choice made by the end of July to begin the IMF's discussion of its new chief from September 6 and to appoint him by October. The candidates include Spanish Economy Minister Nadia Calvino and Portuguese Finance Minister Mario Senteno.

Several Bloomberg sources say that Kristalina Georgieva appears to have the support of Paris. And the Financial Times reported that but stating that its approval by the IMF would require rewriting rules that would not allow a candidate over 65 to run, and that it was above that threshold. The London-based newspaper adds that Rehn and Deiselbloom are benefiting from the support of northern EU countries.

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