Beautiful Virgin Islands

Friday, Aug 21, 2026

Biden administration publicly keeps distance from IMF leader

Biden administration publicly keeps distance from IMF leader

Kristalina Georgieva allegedly acted improperly in helping compile the “Doing Business” report for the World Bank, which saw China’s ranking improve.

The Biden administration is publicly keeping its distance from the leader of the International Monetary Fund, Kristalina Georgieva, ahead of a key meeting Friday that could decide her fate.

Why it matters: The global economy is at risk from any new COVID-19 variant. The IMF is confronting a credibility crisis, and questions about whether China is exerting undue influence on multilateral institutions in Washington. As the fund's biggest shareholder, the U.S. has an important say in its future direction.

*  Georgieva was scheduled to join President Biden at his COVID-19 summit on the sidelines of the UN General Assembly last month — but never appeared with him.

*  So far, the administration has adopted a wait-and-see approach as key senators urge the president to "ensure full accountability."

Between the lines: Losing the head of the IMF would present another political headache for Biden and weaken an institution serving as an international firefighter for countries facing economic collapse.

*  “There is a review currently underway with the IMF Board and Treasury has pushed for a thorough and fair accounting of all the facts,” said Alexandra LaManna, a spokesperson at the Treasury Department.

*  “Our primary responsibility is to uphold the integrity of international financial institutions."

Driving the news: The world’s central bankers and finance ministers are scheduled to converge in Washington for the annual IMF and World Bank meetings, marking the first in-person gathering in two years.

*  Georgieva spent hours before the IMF executive board on Wednesday defending herself.

*  She faces allegations she acted improperly in helping to compile the annual “Doing Business” report for the World Bank, which saw China’s ranking improve.

*  “I am pleased that I finally had the opportunity to explain to the IMF Board my role in the Doing Business report and how I respected the integrity of the report,” Georgieva said in a statement.

*  “I look forward to an expeditious resolution of the matter in a way that preserves the core strengths of the IMF and the World Bank as strong multilateral institutions that fulfill their important missions during these times of unprecedented crisis.”

Flashback: The IMF lost its managing director, Dominique Strauss-Kahn, in 2011 following allegations he sexually assaulted a hotel maid.

*  He was replaced by Christine Lagarde, who left to lead the European Central Bank. Georgieva followed Lagarde at the IMF.

Go deeper: The World Bank commissioned WilmerHale, a global law firm, to conduct an internal review examining whether bank officials manipulated data in the annual “Doing Business” report.

*  The review examined the role played by Georgieva — at the time the World Bank’s CEO — in the context of China's improved ranking. That review, in turn, triggered a review by the IMF.

*  After the World Bank published the WilmerHale findings, The Economist called for Georgieva to resign.

*  On Thursday, Anne O. Krueger, a former chief economist at the World Bank and top IMF official, questioned Georgieva’s ability to run the fund.

*  “Should Georgieva remain in her position, she and her staff will surely be pressured to alter other countries’ data and rankings,” she wrote on Project Syndicate.

But, but, but: Georgieva, a Bulgarian economist, has her defenders, including Joseph Stiglitz, a former World Bank economist and Nobel laureate.

*  He's called the WilmerHale investigation “a hatchet job."

The intrigue: By tradition, European leaders get to decide who leads the IMF, while the U.S. gets to pick the head of the World Bank.

*  That arrangement has been challenged by emerging economies in Latin America, Asia and Africa.

*  Were Georgieva to be forced out, the delicate political balance over who leads what multilateral institution could be upset, and Europe’s leadership of the fund may no longer be a foregone conclusion.

*  It also would mean that the fund's current N0. 2, Geoffrey Okamoto, a former Republican congressional official installed by President Trump, would lead the fund.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
A Sleepless Night on Wall Street: Nasdaq to Begin Nearly Round-the-Clock Trading
"The First in the World": 69-Year-Old Protested Artificial Intelligence—and Went to Jail
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
China’s Lifelike AI Humans Move From Livestreams Into Real-World Service Roles
Sarah Ferguson Reportedly Retreats to Late Ex-Boyfriend's Swiss Chalet
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Better.com Founder Who Fired 900 Employees on Zoom Is Ousted as CEO
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
AI Manager at San Francisco Store Recommends Firing Human Employee
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Hyper-Realistic Reborn Dolls Draw Collectors Seeking Comfort and Craft
Gen Z Cuts Back on Dating as a Night Out Nears $200
Patients Turn to Artificial Intelligence for Therapy as Psychiatrists Warn of Privacy and Clinical Risks
Couples Embrace ‘Sleep Divorce’ to Protect Rest and Reduce Tension
Meta Ordered to Pay $567 Million and Change Facebook and Instagram Safeguards for Children
Up to only 10 Months in Prison for Swedish Officer’s Murderer Sparks Anger
Success: Nvidia Turned Gaming Chips Into the Engine of the AI Boom
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
×