IMF 'has confidence' in Christine Lagarde

Christine Lagarde The investigation relates to Christine Lagarde's time as French finance minister

Related Stories

The International Monetary Fund (IMF) has said it continues to have "confidence" in its managing director Christine Lagarde.

An IMF spokesman said the fund's board backed Ms Lagarde despite a French inquiry into alleged abuses of power.

The probe relates to her time as French finance minister and her involvement in the payment of compensation to businessman Bernard Tapie.

Ms Lagarde, who took over as IMF chief in 2011, denies any wrongdoing.

Her Paris apartment was searched by police investigators last week.

"The executive board has been briefed on this matter, including recently, and continues to express its confidence in the managing director's ability to effectively carry out her duties," said IMF spokesman Gerry Rice at a press conference on Thursday.

No formal charges

Ms Lagarde was involved in a dispute between French businessman Bernard Tapie and the bank Credit Lyonnais in 2007.

She referred the case to an arbitration panel, after which Mr Tapie switched his support to Nicholas Sarkozy, then leader of Ms Lagarde's UMP party, in the presidential election campaign.

Mr Tapie was later awarded 400m euros (£340m) in damages by that panel - a decision approved by Ms Lagarde.

Ms Lagarde has yet to be placed under formal investigation in the case and has denied any wrongdoing.

However, the case comes at a difficult time for the IMF.

Ms Lagarde replaced its disgraced former chief Dominique Strauss-Kahn less than two years ago.

The organisation is also deeply involved in managing the continuing eurozone crisis, including the bailout of Cyprus.

More on This Story

Related Stories

More Business stories

RSS

Features

  • The OfficeIn pictures

    Fifty landmark shows from 50 years of BBC Two


  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Worcestershire flagFlying the flag

    Preserving the identities of England's counties


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


  • Two women in  JohanesburgYour pictures

    Readers' photos on the theme of South Africa


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.