David Lipton to Act as IMF Chief as Christine Lagarde Resigns

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SWITZERLAND, JULY 17 – Managing Director of the International Monetary Fund(IMF), Christine Lagarde has submitted her resignation, leaving David Lipton as the Acting Managing Director of the global financial institution.

This follows her nomination to the presidency of the European Central Bank, she announced Tuesday.

A statement from Lagarde issued on Tuesday reads:

“I have met with the Executive Board and submitted my resignation from the Fund with effect from September 12, 2019. The relinquishment of my responsibilities as Managing Director announced previously will remain in effect until then. With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund, as it will expedite the selection process for my successor.

“The Executive Board will now be taking the necessary steps to move forward with the process for selecting a new Managing Director. David Lipton remains our Acting Managing Director.”

“The Fund will communicate on the Executive Board’s process of selecting a new Managing Director in due course. Mr. David Lipton remains Acting Managing Director.”

EU leaders early this month picked Lagarde to succeed ECB chief Mario Draghi, whose single, eight-year term ends in November.

Lagarde stepped away from the IMF leadership post she has held since 2011, sparking a wave of speculation about who would replace her.

The IMF board tapped her number two, American David Lipton, to serve as interim managing director, but by tradition, a European always leads the fund while an American runs its sister institution, the World Bank.

“With this decision by Managing Director Lagarde, the IMF Executive Board will initiate promptly the process of selecting the next managing director and will communicate in a timely fashion,” the IMF board said in a statement.

Early candidates mentioned as possible successors to Lagarde include Mark Carney, a Canadian who also holds British and Irish citizenship and whose term as leader of the Bank of England is up in January; French politician Pierre Moscovici, who is the EU finance commissioner, and former British finance minister George Osborne.

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