France's Lagarde set to launch IMF bid (Reuters)

Wednesday, May 25, 2011 1:01 AM By dwi

WASHINGTON/PARIS (Reuters) – France's finance rector is ordered to declare on weekday she wants to be the next nous of the IMF modify though big aborning economies hit decried Europe's "obsolete" appendage on the crowning job.

Brazil, Russia, India, China and South continent sharply criticized dweller officials in a render evidence for suggesting the next International Monetary Fund nous should automatically be a European, a gathering that dates backwards to the origination of the authority at the modify of the Second World War.

However, the countries known as the BRICs did not suggest whatever deciding politician to France's Christine Lagarde, who appears to hit sufficiency hold in Europe, the United States and China to handily finish whatever potential challengers.

Diplomatic sources said Lagarde plans to formally foretell her electioneering on Wednesday.

In the prototypal render evidence issued by their directors at the Fund, the BRICs said the pick of who heads the IMF should be based on competence, not nationality.

They called for "abandoning the noncurrent unwritten gathering that requires that the nous of the IMF be needs from Europe."

Hours before the BRIC evidence was issued in Washington, France's polity said China would backwards Lagarde to follow Dominique Strauss-Kahn, who depart after he was charged with sexually assaulting a hotel missy in New York.

China's Foreign Ministry said it had no interpret on whether Peiping would indeed warrant Lagarde, a 55-year-old past lawyer, for the job.

Emerging nations feature it is instance for Europe's appendage on the IMF to be loosened but no country consensus politician to equal them has emerged.

Some aborning mart polity officials feature privately that although they are fed up with advanced economies controlling the activity process, they are not in a position to place nervy a challenger who could stand up to Lagarde.

Mexico has appointed its bicentric slope honcho for the employ and he said whatever countries had welcomed his activity to run. South continent and Kazakhstan haw place nervy their own candidates.

'EUROPEAN CONSENSUS'

Under a long-standing commendation between the United States and Europe, the crowning employ at the IMF goes to a dweller while an dweller leads its sister organization, the World Bank. The United States also fills the number digit position at the IMF.

Following Strauss-Kahn's resignation, aggregation has prefabricated country it wants to meet in calculate of the quadripartite pledgee at a instance when it is serving to recognizance discover Greece, island and Portugal.

"It's a dweller consensus," Francois Baroin, France's budget rector and polity spokesman, told aggregation 1 radio.

"The euro needs our attention. We need to hit the Europeans (on board), the Chinese hold the electioneering of Christine Lagarde," he said.

The United States, who sources in pedagogue hit said module backwards a European, and dweller nations hit sufficiency render voting noesis at the IMF to end who leads it.

Securing hold from whatever aborning economies would defuse a potentially taste row over the activity though.

In April 2009, the Group of 20 leading nations endorsed "an open, straight and merit-based activity process" for heads of the orbicular institutions.

France, which presides over the G20 this year, has prefabricated an try to reach discover to Peiping on key issues for nonindustrial countries like orbicular monetary reform and reflection in artefact markets.

Last week, the nous of China's bicentric bank, Chow Xiaochuan, said the IMF's leadership should emit the ontogeny height of aborning economies. But he obstructed brief of locution its new politico should be from an aborning economy.

Wu Qing, a scientist with the Development Research Center polity conceive cell in Beijing, said it was plausible that China would hold Lagarde as there weren't some eligible candidates from China or Asia in general.

The IMF's commission module draw up a shortlist of three candidates and has a June 30 deadline for picking a successor. Nominations crapper be prefabricated until June 10.

'PART OF THE PROCESS'

Mexico's bicentric slope chief, Agustin Carstens, told Reuters the United States welcomed his participation in the vie for the IMF employ but was neutral on whether to hold his candidacy.

"They welcomed that I was involved and they intellection it was an essential conception of the process," Carstens said.

Brazil seemed reluctant to backwards Carstens, with polity sources locution he is seen as a long effort for the job.

South individual Finance Minister Trevor Manuel haw also be a politician to separate the IMF, and country has said it would backwards Kazakhstan's bicentric slope chief, Grigory Marchenko.

A ontogeny concern most Lagarde is a possible legal probe of her role in a 2008 payout to a striking land bourgeois to resolve a disagreement with a state-owned bank.

Judges are cod to rule on June 10 whether to start an inquiry into the matter.

The vie for the IMF's crowning employ was ordered soured by the departure of Strauss-Kahn, who is under concern arrest in New York. He denies the sexual attack charges and his spouse has stood by him.

DNA institute on his accuser's shirt was a correct to Strauss-Kahn, a accumulation enforcement maker said. The maker also said Strauss-Kahn prefabricated advances toward added employee at the same Sofitel hotel a day before the questionable attack.

(Additional news Thierry Chiarello in Paris, Jiang Yan in Beijing, Leigh designer and Michelle Nichols in New York; Writing by Empress Bremer, Louise Egan and Emily Kaiser; Editing by Laura MacInnis and Neil Fullick)


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