WASHINGTON — The tenure of Kristalina Georgieva as managing director of the International Monetary Fund faces a pivotal second on Friday, when the fund’s govt board will meet to determine whether or not she ought to proceed to be its chief following allegations that she pressured employees to govern a report back to placate China when she was a high World Bank official.
This week, the chief board spent hours questioning Ms. Georgieva about her actions. They additionally interviewed attorneys from WilmerHale, the regulation agency that carried out the World Bank’s inner overview of the circumstances surrounding the Doing Business survey. The agency carried out an inner overview that was printed final month and concluded that Ms. Georgieva performed a central position in meddling with the report, elevating questions on her judgment and talent to proceed main the I.M.F.
Ms. Georgieva has denied the allegations, and in a gathering with the board on Wednesday she supplied a forceful rebuttal.
“The WilmerHale Report does not accurately characterize my actions with respect to Doing Business 2018, nor does it accurately portray my character or the way that I have conducted myself over a long professional career,” Ms. Georgieva mentioned in a press release to the board that was obtained by The New York Times.
Mr. Georgieva, a Bulgarian economist who assumed the highest I.M.F. job in 2019, additionally criticized the character of the World Bank investigation and mentioned that she had been misled.
“The email from WilmerHale requesting my participation said clearly that I was not a subject of the investigation and assured me that my testimony was confidential and protected by World Bank staff rules, which guarantee due process,” Ms. Georgieva mentioned. “None of this proved to be true.”
The controversy surrounding Ms. Georgieva has raised questions on China’s affect in multilateral establishments. It has additionally develop into a distraction for the I.M.F. as it's making an attempt to assist coordinate the worldwide financial response to the pandemic. Prominent economists have publicly debated whether or not she ought to step down. The Economist journal referred to as final month for Ms. Georgieva’s resignation.
The United States, which is the fund’s largest shareholder, has but to supply public help, and officers have declined to say if she ought to keep within the job.
“There is a review currently underway with the I.M.F. Board, and Treasury has pushed for a thorough and fair accounting of all the facts,” mentioned Alexandra LaManna, a Treasury spokeswoman. “Our primary responsibility is to uphold the integrity of international financial institutions.”
Former World Bank officers have described Ms. Georgieva as a polarizing determine, however she has usually received reward on the I.M.F. When she assumed the job in 2019, she shortly restructured the fund to imagine extra direct management over its day by day operations. That included eradicating David Lipton, a very long time I.M.F. official and its first deputy managing director, earlier than his time period expired.
Mr. Lipton is now a high adviser to Treasury Secretary Janet L. Yellen, who can have vital enter as as to whether Ms. Georgieva stays within the job.
Republicans and Democrats in Congress have expressed concern about Ms. Georgieva’s actions on the World Bank and referred to as on Ms. Yellen to make sure “full accountability.”
The United States historically selects an American to be president of the World Bank, whereas the managing director of the I.M.F. is often from Europe.
The I.M.F.’s govt board will meet once more on Friday and will decide about whether or not it continues to believe in Ms. Georgieva.
The annual conferences of the World Bank Group and the International Monetary Fund happen subsequent week.