Why Lagarde Stepped Down As IMF Chief

The International Monetary Fund Managing Director, Christine Lagarde, has announced her resignation from the global lender.

Lagarde’s resignation from the IMF comes with a greater clarity on the process for her nomination to be the next president of the European Central Bank (ECB).

She said in a statement that her decision to step down is to hasten the appointment of her successor as the managing director of the fund.

The 63-year-old further added that her resignation is effective from Sept. 12

“I have made this decision in the best interest of the Fund, as it will expedite the selection process for my successor.”

Ms Lagarde’s ECB nomination triggered the temporary handover of her duties to David Lipton, who is acting as managing director of the IMF.

According to the statement,  the arrangement will continue while the fund’s executive board selects a new head.

In response to Largarde resignation, the IMF’s executive board said: “We would like to express our greatest appreciation for all that Managing Director Lagarde has done for the institution.

“Her legacy of achievements has made a lasting imprint on the Fund. Under her guidance, the Fund successfully helped its members navigate a complex and unprecedented set of challenges, including the impact of the global financial crisis and its aftershocks.

 “Her stewardship has been exceptional, and we are grateful for her innovative and visionary leadership.”

The former French cabinet minister has held the top role at IMF since 2011, and is in line to succeed ECB President Mario Draghi in November.