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WASHINGTON – Kristalina Georgieva’s tenure as managing director of the International Monetary Fund faces a pivotal moment on Friday, when the fund’s board meets to decide whether she should continue to be its leader after allegations that she allegedly pressured staff to manipulate a report to appease China when she was a senior World Bank official.
This week, the board spent hours questioning Ms Georgieva about her actions. He also interviewed lawyers at WilmerHale, the firm that conducted the World Bank’s internal review of the circumstances surrounding the Doing Business investigation. The review, released last month, concluded that Georgieva had played a central role in meddling in the report, raising questions about her judgment and ability to continue to lead the IMF.
Ms Georgieva denied the allegations and, in a meeting with the board on Wednesday, offered a forceful rebuttal.
“The WilmerHale report does not accurately describe my actions in regards to Doing Business 2018, nor does it accurately describe my character or the way I have conducted myself over a long professional career,” Ms. Georgieva said in a commentary. statement to the board, which was obtained by The New York Times.
Mr Georgieva, a Bulgarian economist who held the most senior IMF position in 2019, also criticized the nature of the World Bank’s investigation and said it had been misled.
“WilmerHale’s email requesting my participation made it clear that I was not the subject of the investigation and assured me that my testimony was confidential and protected by the World Bank’s personnel rules, which ensure due process. regular, ”said Georgieva. “None of this turned out to be true.”
The controversy has raised questions about China’s influence in multilateral institutions. It has also become a distraction for the IMF as it tries to help coordinate the global economic response to the pandemic. Leading economists have publicly debated whether Ms Georgieva should step down. The Economist magazine called for his resignation last month.
The United States, which is the fund’s largest shareholder, has yet to offer public support and officials have declined to say whether she should stay in office.
“A review is currently underway with the IMF board, and the Treasury has been pushing for thorough and fair accounting of all facts,” said Alexandra LaManna, spokeswoman for the Treasury. “Our primary responsibility is to preserve the integrity of international financial institutions.
Former World Bank officials have described Georgieva as a polarizing figure, but she has generally received praise at the IMF. When she took office, she quickly restructured the fund to give her more direct control over its day-to-day operations. This included the impeachment of David Lipton, a longtime IMF official and its first deputy managing director, before his term expired.
Mr Lipton is now one of the main advisers to Treasury Secretary Janet L. Yellen, who will have an important input on whether Ms Georgieva remains in office.
Treasury officials debated how to respond to the allegations against Ms Georgieva. A person familiar with the deliberations said Mr Lipton was among the officials who supported Ms Georgieva, whom he worked closely with when she was at the World Bank and he at the IMF.
Republicans and Democrats in Congress have expressed concern over Ms. Georgieva’s actions at the World Bank and called on Ms. Yellen to ensure “full accountability.”
The United States traditionally chooses an American to be president of the World Bank, while the managing director of the IMF is usually European.
The IMF’s board could decide whether it continues to trust Georgieva when it meets on Friday.
The annual meetings of the World Bank Group and the International Monetary Fund take place next week.
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