IMF has first leader from 'emerging market'

Bulgarian economist Kristalina Georgieva was confirmed as the new chief of the International Monetary Fund, or IMF, on Wednesday, becoming the first person from an emerging-market economy to lead the fund since its inception in 1944, the fund's executive board noted in a statement.

Georgieva, 66, who succeeds France's Christine Lagarde to begin her five-year term on Oct 1, said her "immediate priority" was to deal with risks of crises while pursuing long-term goals.

Georgieva has been the chief executive officer of the World Bank since January 2017 and was the interim president for the World Bank Group from February to early April.

In the first two weeks of her tenure, the world's top two economies are expected to resume high-level trade talks in Washington aimed at ending their protracted trade war, and the IMF and World Bank are scheduled to hold their annual meetings, where an updated global economic outlook will be released.

"Warning signs are flashing, and we must be ready to be tested," Georgieva told reporters at the IMF's Washington headquarters after her confirmation.

In its last quarterly World Economic Outlook issued in July, the IMF downgraded its projection for global growth to 3.2 percent in 2019, and warned of a "precarious" 2020, saying that factors such as trade tensions and continued uncertainty were sapping the strength of the world economy.

Georgieva said in a statement that it was 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.

Chinese Foreign Ministry spokesman Geng Shuang congratulated Georgieva on her election as IMF chief at a regular news conference on Thursday.

Saying the IMF is a significant institution for global economic governance, Geng stated that China hopes that under Georgieva's leadership the international body will play an important role in safeguarding the world's economic and financial stability, improving global economic governance and upholding multilateralism and an open global economy.

It is hoped that the IMF will allow the emerging markets and developing countries to have broader representations and a bigger say in the body, Geng said, adding China stands ready to continue to strengthen close cooperation with the IMF.

Georgieva's selection breaks a decades-long tradition in which the IMF had been headed by a Western European, while its sister organization, the World Bank, has been always led by an American.

Georgieva is the second woman ever to lead the world's lender of last resort, following Lagarde, who this month left the post she had held since 2011 to become president of the European Central Bank.

Cao Desheng in Beijing contributed to this story.

huanxinzhao@chinadailyusa.com

(China Daily 09/27/2019 page12)