Kristalina Georgiewa: Head of the International Monetary Fund IMF threatens to be replaced

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Kristalina Georgiewa: Before the fall meeting of the IMF starts in Washington, the IMF boss is fighting for her job

Photo: Jose Luis Magana / DPA

According to her lawyers, the allegations of manipulation against IMF boss Kristalina Georgiewa are flawed. In a letter to the Executive Board of the International Monetary Fund (IMF), lawyer Lanny Breuer argues that the assessment of the case must take into account substantial errors that were made in the preparation of the previous analysis. Georgieva has already denied the allegations several times, but has been under pressure for weeks because of the affair.

The background is an investigation report by the law firm WilmerHale, according to which leading representatives of the World Bank - including its then managing director Georgiewa - are said to have exerted "inappropriate pressure" on employees in order to make China better in the ranking of the "Doing Business" report for 2018.

China finally landed in 78th place after initially being 85th in the first draft.

The report assesses a country's investment climate and business friendliness.

At the time, the World Bank was trying to get support from the Beijing government for a major capital increase.

IMF crisis meeting and criticism from a prominent position

Asks for consequences: Ex-General Director Anne O. Krueger (archive)

Photo: © Reuters Photographer / Reuters / REUTERS

The Breuer letter was published on Thursday evening (local time) and thus shortly before the crisis meeting of the IMF management body planned for Friday. Georgieva is hoping for the support of the fund and its main shareholders. The traditional autumn meeting of the IMF begins next week, at which Federal Finance Minister Olaf Scholz is expected in Washington.

Immediately before the IMF crisis meeting, a contribution by former director general Anne O. Krueger increased the pressure on the incumbent IMF boss.

The International Monetary Fund and the World Bank played a decisive role in overcoming the corona crisis and its economic consequences, said Krueger.

The world trusts in the independence of the two institutions.

For this reason, the IMF cannot allow itself to lose confidence and must now take measures to restore people's trust in the International Monetary Fund, the renowned US economist concludes.

Violation of internal rules?

In addition to Georgiewa, the IMF board of directors also interviewed WilmerHale this week.

According to Breuer, Georgieva was not told that she was part of the WilmerHale investigation.

Nor was she given the opportunity to examine the conclusions and respond to them.

This violated the internal rules of the World Bank.

In an email from July that Reuters saw, WilmerHale wrote to Georgieva: "You are not the target of our investigation."

She will be contacted because she may be able to contribute important information.

WilmerHale, on the other hand, announced that it had complied with all World Bank rules during the analysis.

Ms. Georgieva had been told that the report would be presented to the World Bank Board and that they could disclose statements from it.

la / reuters