Germany backs Georgieva for second term as IMF chief

NEW YORK (AFP): Germany, Europe’s largest economy, voiced its backing Monday for a second term for International Monetary Fund chief Kristalina Georgieva, with finance minister Christian Lindner calling her “exactly the right person”.

Georgieva has navigated the IMF “through difficult times over the last years”, Lindner said on X, formerly known as Twitter.

“I am convinced that she is exactly the right person to steer the institution through the challenges ahead and to strengthen the IMF as an advocate for structural reforms in our economies.”

Bulgarian economist Georgieva, 70, said last week she would be “honoured” to helm the Washington-based financial institution for a second term.

Her current term ends on September 30.

Since she took office in 2019, the IMF has stepped in on numerous occasions to support countries facing significant financial hardship due to the Covid-19 pandemic and the economic impact of Russia’s invasion of Ukraine.

In an interview earlier this year, Georgieva told AFP that 2024 will be “very tough year” for fiscal policy, as countries look to tackle debt burdens accumulated during the pandemic.

Inflation is also likely to remain a challenge for many economies, including the United States, with central banks looking to loosen monetary policy without pushing up prices.

Under a controversial, decades-old agreement between Europe and the United States, the IMF has historically been led by a European, and the World Bank by a US citizen.

Georgieva has received backing from key European allies in recent weeks, including France’s finance minister, Bruno Le Maire, who told reporters on the sidelines of the G20 in Brazil that she was doing a “great job” running the IMF.