The IMF forecasts 4.6% growth for Central America in 2022

These are the IMF’s latest economic growth forecasts for Latin America and the Caribbean in 2020 and 2021, published Tuesday in the quarterly update of its World Economic Outlook (WEO).

The International Monetary Fund (IMF) published its global economic outlook on Tuesday, a day after it supported the continuation of Bulgarian Kristalina Georgieva as managing director of the fund after weeks of investigation.

The question of whether 68-year-old Georgieva will remain at the helm of the fund has been looming since the results of an investigation by law firm Wilmerhill were published on September 16 at the request of the World Bank’s ethics committee. .

The investigation indicated that Georgieva, managing director of the International Monetary Fund since October 1, 2019, manipulated banking information in favor of China, which she denied.

“Guide [del FMI] It found that information provided during the review did not conclusively establish that the Director-General played an inappropriate role in relation to Doing Business 2018, when she was CEO of the World Bank, according to the press release.

The text added: “After reviewing all the evidence presented, the Board of Directors reaffirms its full confidence in the leadership and ability of the Managing Director to continue to perform his duties effectively.”

The announcement comes as the International Monetary Fund and the World Bank begin their fall meetings on Monday with integrity as the bottom line.

The two bodies say they have confidence in Georgieva’s “commitment” to “adhering to the highest standards of governance and integrity at the IMF”.

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However, the Board of Directors plans to meet in the future to “consider possible additional measures to ensure the solidity” of the institution in this matter.

The investigation became known amid complex negotiations the World Bank had with China over the bank’s capital increase.

“The Hard Episode”

For her part, Georgieva stressed that this is a “difficult episode on a personal level”, while reiterating that the facts are “unfounded.”

He responded, “As the International Monetary Fund meets this week, I am honored to lead such a talented team that is working tirelessly to address the world’s greatest challenges, from fighting COVID-19 to fighting climate change and fighting economic inequality.”

The issue has led to a deep split among the IMF’s 24 executive board members.

While France, the United Kingdom, and Europe in general have expressed support for Georgieva, the United States has been more reluctant to endorse it.

Only at the end of nearly four weeks of discussions did the United States end up joining the Europeans who wanted Georgieva to reassert his position.

In a separate statement, US Treasury Secretary Janet Yellen said she met Georgieva on Monday to discuss “legitimate concerns” arising from the investigation and highlighted her commitment to “maintaining the integrity and credibility of the World Bank and the International Monetary Fund.”

However, like other members of the Executive Board of the International Monetary Fund, the Treasury considered that “in the absence of additional direct evidence of the role of the Director-General, there is no basis for changing the direction” of the Fund.

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The IMF said it had conducted a “comprehensive” and “objective” review of the issue, meeting eight times.

“unprecision”

During a meeting with the board of directors, Georgieva lamented “the inaccuracies and erroneous assumptions made by the authors of the report.”

At the same time, he was supported by former World Bank officials and famous economists, including Nobel laureate Joseph Stiglitz.

The US Treasury warned on Monday that it would evaluate any news of the case.

The IMF Executive Board also noted that the World Bank’s investigation into potential employee misconduct in Doing Business was “ongoing.”

Georgieva took over as head of the fund on October 1, 2019, replacing Christine Lagarde of France, who was appointed as a member of the European Central Bank.

In 2019, the IMF authorities had to change the laws in order to ratify the appointment of Georgieva, who exceeded the established minimum age of 65 years.

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