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(Adds comment via German Finance Minister in paragraphs 8-9)
By Andrea Shalal
SAO PAULO, Feb 28 (Reuters) – French Finance Minister Bruno Le Maire on Wednesday praised Kristalina Georgieva for the “great job” she has been doing as managing director of the International Monetary Fund (IMF), and said he would support her for a second term.
Le Maire told reporters on the sidelines of the G20 summit in Sao Paulo that it made sense to keep Georgieva in the most sensible job at the global lender.
Georgieva’s five-year term ends on Sept. 30.
Under a long-standing agreement, European countries historically nominate a candidate to head the IMF, while the United States nominates a candidate to head the World Bank. The two missions are finally carried out through the institutions’ control council.
“I just need to point out that Kristalina Georgieva is doing a wonderful job as managing director of the IMF and when someone is doing a wonderful job, it’s more wonderful to continue to be the same user in the same position,” he said.
“I, Kristalina Georgieva, am the right person, in the right position and at the right time. “
France’s support for a second term is significant, but Europe’s pick for the job must be agreed by all European Union members.
German Finance Minister Christian Lindner told Reuters that Germany had not yet appointed a second term for Georgieva but said he would meet with the IMF chief on Thursday.
“During the crisis, she has been a strong leader who has played a vital role in ensuring that we have a budget for Ukraine and in dealing with the consequences of the COVID-19 pandemic. We have to give him credit for that,” Lindner said.
Asked if she had been preoccupied with discussions about a second term, Georgieva told Reuters on Tuesday she was focused on the task at the helm of the IMF, adding: “I think you will do the task you have, not a hypothetical task in the future. “. »
Georgieva, a gregarious economist from Bulgaria, is the second woman to head the IMF and the first person from an emerging market economy.
Keeping Georgieva on for a second term would answer longstanding concerns raised by emerging market and developing countries over the U.S.-European duopoly at the two global financial institutions, the IMF and World Bank.
Georgieva, who describes herself as an “eternal optimist,” has weathered huge shocks to the global economy, since the outbreak of the global COVID-19 pandemic just months after Russia’s invasion of Ukraine in February 2022.
She is focused on bolstering prospects for medium-term growth which is lagging historical levels, managing the ongoing sovereign debt challenges and guiding the IMF through a complicated quota revamp.
Georgieva drew early complaints inside and outside the Fund for her willingness to include the climate update in monitoring reports on member countries’ economies and for her strong focus on emerging and emerging economies.
She’s been instrumental in securing large loans for Ukraine, helping to catalyze additional funds to help its economy weather the strains of the two-year war against Russia’s invasion, overseen a revamp of Argentina’s massive loan program and worked steadily to help China embrace sovereign debt restructurings.
She also survived a first private challenge in 2021, when the IMF executive board expressed confidence in her after reviewing accusations that, while running for the World Bank, she had insisted on updating data in favor of China.
U. S. Treasury Secretary Janet Yellen warned Georgieva at the time that she would closely monitor the IMF’s follow-up and compare any new facts or conclusions, but the two men have developed a relationship since then, according to sources close to the two officials.
Sources familiar with the process said the selection would be settled quickly once Europe unites around a candidate.
While Georgieva’s term may not end for months, some say it would make sense to make decisions before the IMF and World Bank spring assemblies in April so that the leadership issue does not overshadow the already busy AG assembly. (Reporting via Reporting by Andrea Shalal; Editing by David Rich)