IMF directors voice confidence in Lagarde

4th August 2011, Comments 0 comments

The executive board of the International Monetary Fund expressed confidence in managing director Christine Lagarde Thursday after a French court ordered an embezzlement probe against her.

"It would not be appropriate for the board to comment on a case that is currently before the French judiciary. However, the board is confident that she will be able to effectively carry out her duties as managing director," it said in a statement.

The board said it had already reviewed the issues in the case when it weighed Lagarde's candidacy to run the global crisis lender in June.

The former French finance minister was chosen over Mexican central banker and former IMF executive Agustin Carstens at the end of June and took up the job in July amid Europe's mounting debt crisis.

Earlier Thursday a French court ordered a probe for embezzlement and other fraud-related charges against Lagarde dating to when she was finance minister.

She has denied any wrongdoing or illegality in the case, which resulted in a big compensation payment to controversial businessman Bernard Tapie, out of public funds in 2008.

© 2011 AFP

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