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WASHINGTON — The tenure of Kristalina Georgieva as managing director of the International Monetary Fund faces a pivotal second on Friday, when the fund’s govt board will meet to resolve whether or not she ought to proceed to be its chief following allegations that she pressured employees to govern a report back to placate China when she was a prime World Bank official.
This week, the govt board spent hours questioning Ms. Georgieva about her actions. They additionally interviewed attorneys from WilmerHale, the regulation agency that carried out the World Bank’s inside overview of the circumstances surrounding the Doing Business survey. The agency carried out an inside overview that was revealed final month and concluded that Ms. Georgieva performed a central function in meddling with the report, elevating questions on her judgment and talent to proceed main the I.M.F.
Ms. Georgieva has denied the allegations, and in a gathering with the board on Wednesday she provided a forceful rebuttal.
“The WilmerHale Report does not accurately characterize my actions with respect to Doing Business 2018, nor does it accurately portray my character or the way that I have conducted myself over a long professional career,” Ms. Georgieva stated in a press release to the board that was obtained by The New York Times.
Mr. Georgieva, a Bulgarian economist who assumed the prime I.M.F. job in 2019, additionally criticized the nature of the World Bank investigation and stated that she had been misled.
“The email from WilmerHale requesting my participation said clearly that I was not a subject of the investigation and assured me that my testimony was confidential and protected by World Bank staff rules, which guarantee due process,” Ms. Georgieva stated. “None of this proved to be true.”
The controversy surrounding Ms. Georgieva has raised questions on China’s affect in multilateral establishments. It has additionally develop into a distraction for the I.M.F. as it is making an attempt to assist coordinate the international financial response to the pandemic. Prominent economists have publicly debated whether or not she ought to step down. The Economist journal known as final month for Ms. Georgieva’s resignation.
The United States, which is the fund’s largest shareholder, has but to supply public help, and officers have declined to say if she ought to keep in the job.
“There is a review currently underway with the I.M.F. Board, and Treasury has pushed for a thorough and fair accounting of all the facts,” stated Alexandra LaManna, a Treasury spokeswoman. “Our primary responsibility is to uphold the integrity of international financial institutions.”
Former World Bank officers have described Ms. Georgieva as a polarizing determine, however she has typically gained reward at the I.M.F. When she assumed the job in 2019, she shortly restructured the fund to imagine extra direct management over its each day operations. That included eradicating David Lipton, a very long time I.M.F. official and its first deputy managing director, earlier than his time period expired.
Mr. Lipton is now a prime adviser to Treasury Secretary Janet L. Yellen, who could have vital enter as as to if Ms. Georgieva stays in the job.
Republicans and Democrats in Congress have expressed concern about Ms. Georgieva’s actions at the World Bank and known as on Ms. Yellen to make sure “full accountability.”
The United States historically selects an American to be president of the World Bank, whereas the managing director of the I.M.F. is normally from Europe.
The I.M.F.’s govt board will meet once more on Friday and will decide about whether or not it continues to have faith in Ms. Georgieva.
The annual conferences of the World Bank Group and the International Monetary Fund happen subsequent week.
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