The United States has told IMF board members that it will not seek to impeach Director-General Kristalina Georgieva over allegations that she pressured staff to manipulate data for a World Bank report to help China, potentially clearing the way for her to keep. her job.
The position was taken during board deliberations on Monday, said people familiar with the matter on condition of anonymity to discuss private discussions.
Spokesmen for the US Treasury and the International Monetary Fund declined to comment.
With Georgieva already ready to Get support Of several European countries, the Biden administration’s decision puts her in a position to remain the head of the Washington-based lender. However, allegations against her and Georgieva’s subsequent fight over her work threaten to overshadow the two institutions’ annual meetings, which began in Washington on Monday, at a time when they are tasked with supporting economies through the COVID-19 pandemic.
Georgieva’s fate has been in limbo since September 16, when a Report Written by the law firm WilmerHale and commissioned by the World Bank, his former employer, it claims to have pressured subordinates to lobby for China’s place in the influential “Doing Business” report.
The United States, the largest contributor to both the International Monetary Fund and the World Bank, has called allegations about Georgieva’s tenure at the World Bank “serious” and discussed its call for her resignation, Bloomberg News reported last week. Other major shareholders declined to express their support pending the outcome of the International Monetary Fund’s internal review.
The Executive Board, which includes 24 directors representing 190 member countries, was quick to make a decision, after hours of discussions over several days with WilmerHale and Georgieva.
Georgieva, 68, who was executive director of the World Bank from 2017 to 2019, denied the allegations, telling the IMF board that the report “did not accurately describe my actions” or “accurately describe my character or the way I acted over a period of time.” . A long career,” according to a statement shared with Bloomberg News.
The allegations have raised questions about his ability to lead the International Monetary Fund, which is expected to provide unbiased analysis and be an honest broker and tough advisor between governments, especially those who seek its help. The report also sparked fresh criticism of China’s growing influence in the International Monetary Fund and the World Bank.
“Georgieva’s tenure as IMF chief will undermine the IMF’s credibility and future decisions will be fraught with a cloud of uncertainty,” Arkansas Republican Representative French Hill said in an emailed statement.
A French finance ministry official said a review of the case by the law firm Wilmerhill did not provide details of the specifics of the direct challenge to Georgieva’s conduct, which is why France supports it.
Another European official, who asked not to be named, said countries such as France and the United Kingdom are among those still behind the IMF chief because they see no clear evidence against it.
While the United States is the IMF’s largest contributor, France has traditionally had a lot to say about who would become the managing director. Five heads of the IMF were French, and even when the country did not get the highest office, it played a major role in determining who got it.
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