‘Immediate priority is to help countries minimize the risk of crises,’ says new IMF chief

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Sep 26, 2019 05:30 PM | International

Newly elected head of the International Monetary Fund (IMF) Kristalina Georgieva says the lending agency’s “immediate priority is to help countries minimize the risk of crises”, following her installment as the 12th managing director since the Fund’s inception in 1944.

The 66-year-old Bulgarian national was on September 25 elected to the top job, replacing colleague and French woman Christine Lagarde who relinquishes the post after serving eight years to take up the role of president of the European Central Bank effective November 1.

In a statement Georgieva thanked her “dear friend” Lagarde before vowing to “ensure stability of the global economy” under her five-year term which officially begins October 1.

“I am deeply honored to have been selected as managing director of the IMF and grateful for the trust that the Fund’s global membership and the executive board have placed in me. I want to pay tribute to my predecessor, Christine Lagarde, a great leader and a dear friend, whose vision and tireless work have contributed so much to the continued success of the Fund.

“The IMF is a unique institution with a great history and a world-class staff. I come as a firm believer in its mandate to help ensure the stability of the global economic and financial system through international cooperation. Indeed, in my view, the Fund’s role has never been more important,” Georgieva said.

The former World Bank CEO added: “It is a huge responsibility to be at the helm of the IMF at a time when global economic growth continues to disappoint, trade tensions persist, and debt is at historically high levels. As I noted in my statement to the executive board, our immediate priority is to help countries minimize the risk of crises and be ready to cope with downturns. Yet, we should not lose sight of our long-term objective – to support sound monetary, fiscal and structural policies to build stronger economies and improve people’s lives. This means also dealing with issues like inequalities, climate risks and rapid technological change.

“For our readiness to act, safeguarding the Fund’s financial strength is essential, and so are enhancing its surveillance and capacity development efforts. Working with my team, my goal is to further strengthen the Fund by making it even more forward-looking and attentive to the needs of our members.

“I look forward to working with all our 189-member countries, the executive board and staff, and with all our partners in the years ahead.”