London Daily

Focus on the big picture.
Friday, Jul 31, 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

0:00
0:00
Close
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Prince Harry Faces Significant Legal Costs After Insurance Shortfall
FirstGroup Sells Rail Software Business to Tracsis for £48 Million
Victoria and Albert Museum Staff Vote for Strike Action
Norwegian Teenager Convicted Over Contract Killing Plot in Britain
Royal Mail Raises Bulk Mailing Prices by 30%
Immigration Remains Britain's Top Public Concern, Ipsos Survey Finds
Prime Minister Says Social Care Reform Must Precede Assisted Dying Legislation
×