Christine Lagarde may remain IMF director despite conviction by French court

Reported by

Prof. Dr. Med. Robert Gorter

December 20th, 2016

IMF Managing Director Christine Lagarde at the French court

Despite her conviction, International Monetary Fund (IMF) President Christine Lagarde continues to have the support of the board. That indicates that she can stay on.

Lagarde was found guilty of negligence and fraud in France on Monday. The French judges also decided that sixty-year-old Lagarde would not receive a sentence.

In a statement, the IMF said the board continues to have “full confidence” in Lagarde and looks forward to continuing to work with her.

In 2008, as French Minister of Finance and Economic Affairs, Lagarde allegedly did not intervene in a compensation scheme for businessman Bernard Tapie. He received 400 million euros from the state bank Crédit Lyonnais after a dispute over the sale of his majority share in the German sports company Adidas.

The IMF CEO has announced that she does not intend to appeal. “I’m not satisfied with it, but there is a point where one just has to stop, turn the page, and continue working with those people who have put their trust in me,” Lagarde said.

Lagarde lawsuit

The prosecutor in the case against Lagarde pushed for an acquittal. Jean-Claude Marin said Thursday that the hearings have not produced evidence of the charges and that he is against a conviction.

Lagarde told the Court of the Republic on December 12 that she is “very shocked” by the 2015 indictment. According to her, it is short-sighted and approximately “a fantasy plot”, written by someone who has never met her. If convicted, Lagarde would receive a maximum of one year in prison and a fine of 15 thousand euros.