Georgieva says she would be ‘honored’ to serve 2nd term
WASHINGTON: IMF chief Kristalina Georgieva said Friday she would be “honored” to helm the Washington-based financial institution for a second five-year term if she is renominated by member states. “I have received words of support for the work of the IMF from many of our members in recent weeks,” Georgieva, 70, wrote in a statement on X, formerly Twitter.
“If the broader membership agrees, I would be honored to continue to serve as the IMF Managing Director,” she added. Speculation has swirled in recent months about whether Georgieva, a Bulgarian economist, might run again once her current term expires 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 International Monetary Fund has historically been led by a European, and the World Bank by a US citizen. This unwritten arrangement was reaffirmed last year when the Biden administration nominated Ajay Banga, an Indian-born, naturalized US citizen, to run the World Bank, which sits just across the street from the IMF in Washington.
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. Earlier Friday, the governor of the Bulgarian National Bank, Dimitar Radev, said in a statement that he had spoken with Georgieva about running for a second term.
“I am glad to report that she confirmed that it would be an honor for her to do that, as long as she receives support from IMF members,” he said, in words later mirrored by Georgieva.