The case regarding the possible involvement of the head of the International Monetary Fund, Kristalina Georgieva, in the data manipulation of the World Bank, has led to a rift between the United States of America and the major European Union countries. According to sources close to the International Monetary Fund, in the talks that lasted for days, the US government was of the opinion that Georgieva is in fact no longer viable. On the other hand, the Europeans, including Germany, supported the Bulgarians, who have been running the International Monetary Fund for two years. The IMF’s 24-member Executive Board, which represents all 190 member states, wanted to consult again Monday evening in Washington. The outcome of the discussion has not yet been determined when this issue was brought to the press.
The starting point in the conflict is the so-called Doing Business report, previously published by the World Bank once a year. The IMF’s sister institution report provides information on how easy or difficult it is to be economically active in each of the 189 member countries. The rating is very important to many governments because it can help determine how much money international companies and investment funds are putting into emerging markets, for example. According to an official investigation by the American law firm Wilmer-Hale, tampering is said to have occurred in the preparation of the 2017 report: apparently, World Bank employees garbled China’s data, thus helping the country achieve a better ranking than the current rating. Actually suitable. In turn, the People’s Republic is said to have given up its resistance to the capital increase planned by the World Bank.
Georgia’s reputation could already be irreparably damaged
According to Wilmer Hill, Georgieva, who was executive director of the World Bank under then-President Jim Yong Kim, was not only implicated in manipulation, but also a driving force. On the other hand, today the head of the International Monetary Fund strongly rejects these allegations and assures that she and her staff did not engage in any deception. Instead, Adlatten accuses Kim of distorting the report.
While Japan sided with the United States in the conflict, Germany, France, Italy, and Great Britain initially stuck to Georgieva. This is not surprising, because the 68-year-old Europeans have proposed them for the position of the International Monetary Fund. Only on Sunday had the Executive Board announced after further hearings on both sides that the situation could now be better assessed and that a decision would be reached “very soon”. Indeed, speed is of the essence, because the annual meeting of the International Monetary Fund and the World Bank begins on Monday in Washington, to which senior politicians from around the world will travel, including Federal Finance Minister Olaf Schultz (SPD).
The question before the board meeting began on Monday was whether Georgieva had already been so irreparably damaged that she would in fact be unable to continue in her position even if she was acquitted on the Executive Committee. The head of the International Monetary Fund is counting on a good relationship with the US government, which holds 16.5% of the voting rights not only the largest shareholder of the fund, but also the dominant political power.
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