IMF board decision hangs over Georgieva as IMF-World Bank annual meetings begin

The Executive Director of the International Monetary Fund (IMF), Kristalina Georgieva, speaks during a closing press conference for the International Monetary Fund, during the annual conference of finance ministers and bank governors of the IMF and the World Bank in Washington, USA, October 19, 2019. REUTERS / Mike Theiler

WASHINGTON, Oct. 10 (Reuters) – The opening of the week-long annual IMF and World Bank meetings on Monday should surface allegations of data manipulation against managing director of the International Monetary Fund, Kristalina Georgieva, as the fund’s board of directors has failed to complete its review yet Marathon meeting.

The IMF board of directors met with Georgieva and the law firm on Sunday, which claims it pressured World Bank staff to change dates to improve China’s “doing business” ranking when she was World Bank chief in 2017, the IMF said in a statement, adding that the board had tried to “clarify details” in the review.

“The Board of Directors made further significant progress today in its assessment to conclude its review of the matter very soon,” said the Fund.

The 24-member IMF board plans to meet again on Monday to decide Georgieva’s future at the helm of the global crisis lender, people familiar with the plans said.

A source familiar with the discussions expressed confidence that the IMF chief would be acquitted by the board.

France and other European governments backed the Bulgarian economist on Friday to end her tenure as head of the IMF, while US officials and others sought more time to review the various reports of data irregularities in the now-discontinued World Bank flagship report “Doing Business ”to study.

The scandal threatens to overshadow the high profile meetings where Georgieva, along with World Bank President David Malpass, will take a lead in discussions on global recovery from the COVID-19 pandemic, debt relief and accelerated vaccination efforts will.

MARATHON SESSIONS

The IMF board of directors debated the matter for five hours on Friday before adjourning and scheduling separate meetings with Georgieva and lawyers from WilmerHale law firm on Sunday. These meetings continued late into the night on Sunday.

Georgieva has firmly denied the allegations that go back to 2017, when she was still head of the World Bank. In October 2019 she became Managing Director of the IMF.

WilmerHale’s investigative report, which was prepared for the World Bank’s board of directors, alleged Georgieva was putting “undue pressure” on bank employees at the time to make data changes to improve China’s ranking in the flagship “Doing Business” report, just as the bank of Beijing’s support for a major was looking for a capital increase.

Georgieva’s attorney says the WilmerHale investigation violated World Bank personnel rules by denying it the opportunity to respond to the allegations, an allegation the law firm denies.

No comment on the Sunday meetings was immediately available from Georgieva or the law firm.

The Financial Times reported Sunday that the United States and Japan want Georgieva out of the job, without naming specific sources.

The US Treasury Department, which controls 16.5% of the IMF’s shares, declined to comment on the FT report. No comment was immediately available from the Japanese embassy in Washington.

Reporting by Andrea Shalal; additional coverage from David Lawder; Arrangement by Ross Colvin, Diane Craft & Simon Cameron-Moore

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