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IMF chief Georgieva says data-rigging scandal won’t hamper IMF-World Bank cooperation By Reuters

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© Reuters. FILE PHOTO – Kristalina Georgieva (International Monetary Fund Managing Direct) speaks in a joint press conference held at the Summit for the Financing Africa Economies, Paris, France on May 18, 2021. Ludovic Marin/Pool via REUTERS

Andrea Shalal and David Lawder

WASHINGTON, (Reuters) – International Monetary Fund chief Kristalina Georgiaieva said Wednesday that she didn’t expect a data-rigging scandal involving the World Bank to disrupt decades of collaboration between both institutions.

Georgieva was cleared by the IMF’s executive boards of the incident on Monday. Georgieva had harshly criticized the report by WilmerHale and the decision by World Bank to make the results public.

According to the law firm, Georgieva and others at the World Bank applied pressure to bank employees to change their behavior in order to improve China’s position in its 2018 Business Climate Report.

Georgieva strongly denied the allegations. She and her lawyer also fault WilmerHale because they didn’t tell her that she was the subject of the investigation.

Many of her backers, including Nobel Prize winner economist Joseph Stiglitz, called the report “a hatchet job” by World Bank President David Malpass and Mark Weisbrot who is codirector of Center for Economic and Policy Research called for Congress’s investigation of Malpass’s behavior in the matter.

Malpass declined to comment other than saying the report speaks for itself.

Georgieva was a World Bank employee for over 30 years. She told reporters the collaboration had been strong “for decades” and that it would continue to be so.

“I love both the bank and the fund,” she stated, noting that it was a dual institutional structure that had delivered results for members. There are major, significant challenges facing us, and our institutions do the best job of addressing them.

They included the efforts to fight COVID-19, address high levels in debt among developing countries, and jointly work on financial sector assessments.

Georgieva dismissed questions about whether the proposed IMF Resilience and Sustainability Trust would overlap with the World Bank’s mandate, and said that the fund officials had been working in close collaboration with bank counterparts to develop the instrument.

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