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IMF Chief Called Out Over World Bank Ethics Issue

Sovereign Debt Crisis
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EDITOR NOTE: International Monetary Fund (IMF) Managing Director Kristalina Georgieva has been applying pressure to boost China’s position in a ranking of economies and her former employer, the World Bank, called her out for it. Bloomberg reports that the Bulgarian economist’s 2018 “Doing Business” report kept China’s economy at No. 78 in the world instead of dropping it to No. 85 where it belonged. A third-party law firm investigation commissioned by the World Bank “found such serious ethics issues in its probe … that it decided to abandon the series entirely.” The damning account states that “pressure [was] applied by bank leadership” to “increase its ranking at precisely the same time the country was expected to play a key role in the bank’s capital-increase campaign.” This type of corruption raises serious questions about the IMF ahead of the organization’s September 30 revaluing of the global SDR basket, which could seriously impact the values of the U.S. dollar and other currencies around the world, including China’s yuan. 

International Monetary Fund Managing Director Kristalina Georgieva was called out Thursday by the World Bank, her previous employer, for applying pressure to boost China’s position in a ranking of economies.
The World Bank found such serious ethics issues in its probe of the “Doing Business” report that it decided to abandon the series entirely, a statement released in Washington showed.

China’s position in the 2018 report, released in October 2017, should have been seven places lower -- at No. 85 rather than remaining at 78 -- the World Bank said in a review released in December.

“The changes to China’s data in Doing Business 2018 appear to be the product of two distinct types of pressure applied by bank leadership on the Doing Business team,” the World Bank said in a report Thursday. The bank cited Georgieva, along with an adviser, for “pressure” to “make specific changes to China’s data points in an effort to increase its ranking at precisely the same time the country was expected to play a key role in the bank’s capital-increase campaign.”

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