“Congratulations to Kristalina Georgieva on the nomination as a candidate for the role of Managing Director of the IMF. I can’t think of a more suitable candidate. You have my country’s & my own support. Wishing you the best @KGeorgieva !” he said in a tweet.
IMF is an international organization headquartered in Washington, D.C., consisting of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Formed in 1944 at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. It now plays a central role in the management of balance of payments difficulties and international financial crises.
Countries contribute funds to a pool through a quota system from which countries experiencing a balance of payments problems can borrow money. As of 2016, the fund had SDR477 billion (about $667 billion).
Through the fund and other activities such as the gathering of statistics and analysis, surveillance of its members’ economies, and the demand for particular policies,[ the IMF works to improve the economies of its member countries.
The fund is seeking a replacement of Christine Lagarde who has recently resigned to the top leadership after her appointment as the President of the European Bank.
Ms. Georgieva narrowly won a head-to-head run-off against Jeroen Dijsselbloem, the Dutch former chair of the Eurogroup of eurozone finance ministers.
Ms. Georgieva is now favorite to become the next head of the IMF when the fund’s governing board votes on candidates in early October. No other candidates from large emerging economies have declared their candidacy.
Under a convention with the US, a European usually leads the IMF and an American national head the World Bank.
Ms. Georgieva, a former EU commissioner for Bulgaria, is a highly respected economist who won plaudits during her time at the World Bank. Should she be appointed in October, she would become the first eastern European nations to take charge of the Fund.
According to reports, her path to the job faces further obstacles even following her triumph over Mr. Dijsselbloem.
Her successful nomination would require a change to the IMF’s bylaws which bar a sitting managing director from being more than 65 years old. Ms. Georgieva turned 65 last year.
The IMF board of directors did not reach a consensus on whether to change the rule when it met in Washington last month.
France and other countries in support of Ms. Georgieva say the age change can be quickly agreed and has backing from the US.
Ms. Georgieva has been CEO of the World Bank since the beginning of 2017 and served as interim president after Jim Yong Kim unexpectedly resigned in January. She was passed over for the permanent posting in favor of the US candidate David Malpass.
The Bulgarian national has a long history of working at multi-laterals, serving at the European Commission and the UN. She first joined the World Bank in 1993 as an environmental economist and has worked for the organization across Asia and in Russia.
Congratulations to Kristalina Georgieva on the nomination as a candidate for the role of Managing Director of the IMF. Can’t think of a more suitable candidate. You have my country’s & my own support. Wishing you the best @KGeorgieva !
— Paul Kagame (@PaulKagame) August 5, 2019