Joe Biden’s team debates whether to demand Kristalina Georgieva’s resignation as IMF director following China scandal

Treasury Department officials are debating whether United States, main shareholder of the International Monetary Fund (IMF), is expected to call for the resignation of the managing director, Kristalina Georgieva, amid an ethics scandal, people familiar with the situation said.

Treasury deliberations continue as Washington-based fund said its board of directors met with Georgieva on Wednesday as part of the ongoing review of an investigation conducted by law firm WilmerHale, at the request of the World Bank which alleges Georgieva pressured bank staff to adjust the data to get a rating in favor of China while working there. In 2019, he took over as head of the IMF.

The 24-member board of directors “remains committed to thorough, objective and timely review and look forward to seeing each other again soon for in-depth discussionThe IMF said in a statement.

The people who spoke Bloomberg News on the American position, they refused to be identified because the discussions are private. Washington’s position is decisive in this matter because it holds most of the fund’s voting rights with 16.5%.

“There is an ongoing review with the IMF board and the Treasury has been pushing for full and fair accounting of all facts,” Treasury spokeswoman Alexandra LaManna said. “Our main responsibility is to defend the integrity of international financial institutions», Added the manager, who declined to say whether the agency’s decision on Georgieva will be made public.

The board meeting lasted around five hours and the body will meet again on Friday, when the executive directors could reach a common position, another person noted.

On Monday, the board met with WilmerHale, according to a statement sent.

According to several people familiar with the matter, Some of the fund’s staff, which employs around 2,700 people, have lost confidence in Georgieva, which retains the support of figures like Joseph Stiglitz.

The annual meetings of the IMF and the World Bank, which will be held partially in person next week for the first time since the start of the pandemic, are usually a place to showcase the best research and new initiatives of the Bretton Woods institutions. But this year, employees in its ranks have been distracted by the scandal surrounding the World Bank’s “Doing Business” report and questions about Georgieva’s future, according to people familiar with the internal dynamics.

The IMF did not immediately respond to an email seeking comment.

(With information from Bloomberg / By Eric Martin and Saleha Mohsin)

KEEP READING: