Bank Of Israel Governor Fischer challenging Lagarde for IMF head

Lagarde, France's finance minister, pressed on with a tour of capitals and told her Saudi Arabian counterpart that tackling sovereign debt troubles would be a priority of the IMF if she led the Washington-based rescue lender.

Fischer, first deputy managing director of the IMF from 1994 to 2001, was once described by former U.S. Treasury Secretary Robert Rubin as the “unsung hero” of the world financial crises of the 1990s.

He is also competing with Mexican central bank chief Agustin Carstens.

Fischer had said the IMF post was one of the best jobs in the international financial system but was noncommittal on a bid until Saturday.

“There arose an extraordinary and unplanned opportunity — perhaps one that will never happen again — to compete for the head of the IMF, which after much deliberation I decided I wish to follow through on,” Fischer said in a statement.

Israeli Finance Minister Yuval Steinitz, Israel's representative at the IMF, said he would support and aid the candidacy of Fischer, whose resume also includes a spell as chief economist at the World Bank.

The top IMF job was vacated by Frenchman Dominique Strauss-Kahn, who resigned after his arrest on May 14 on charges of attempting to rape a New York hotel maid.

The deadline for applications to replace him closed at midnight on Friday.

Fischer, 67, would be a significant challenger to Lagarde and has been a candidate for the fund's top job in the past.

But the IMF would have to change its rules that no one should be appointed to the post over the age of 65 and that no one should hold the job, which carries a five-year term, beyond the age of 70.

Fischer, also an ex-vice chairman of Citigroup, was born in what is now Zambia but holds Israeli citizenship, which could pose a problem for Arab countries. He is also a U.S. citizen, which could prove an obstacle as the United States traditionally claims the top job at the World Bank, while a European has always run the IMF.

“Because of my unique experience ... I believe I can contribute to the IMF, the central entity of the global economy, and contribute to the global economy after the crisis,” said Fischer, who said previously the head of the IMF did not need to be European.

Subscribe to The China Post and save 25%. Click here

PrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email