The Executive Board International Monetary Fund IMF has said that the Managing Director of the Fund has resigned her appointment and that selection process to replace will begin immediately. A statement issued by IMF said “Today the IMF Executive Board accepted Managing Director Christine Lagarde’s resignation from the Fund with effect from September 12, 2019.

“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.” The Fund has excelled in serving its entire membership over the course of her tenure with cutting-edge policy advice supported by ground-breaking analytical work on a range of macro-critical issues.

“Her stewardship has been exceptional, and we are grateful for her innovative and visionary leadership. With this decision by Managing Director Lagarde, the IMF Executive Board will initiate promptly the process of selecting the next Managing Director and will communicate in a timely fashion. The Executive Board has the utmost confidence in Mr. David Lipton, who remains Acting Managing Director of the Fund in the interim period.”

Ms. Christine Lagarde on her part said “I have met with the Executive Board and submitted my resignation from the Fund with effect from September 12, 2019. The relinquishment of my responsibilities as Managing Director announced previously will remain in effect until then. With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund, as it will expedite the selection process for my successor. “The Executive Board will now be taking the necessary steps to move forward with the process for selecting a new Managing Director. David Lipton remains our Acting Managing Director.”

The Executive Board of the International Monetary Fund (IMF) had earlier said that it accepted the decision of Ms Christine Lagarde to relinquish her position as Managing Director temporary. It said that the Deputy Managing Director will act on her position. In a statement at the time the IMF said “The Executive Board of the International Monetary Fund (IMF) issued the following statement following the nomination of IMF Managing Director Christine Lagarde to the presidency of the European Central Bank. We, the Executive Board of the IMF, take note of the nomination of IMF Managing Director Christine Lagarde as President of the European Central Bank. We accept Ms. Lagarde’s decision to relinquish her IMF responsibilities temporarily during the nomination period. We have full confidence in First Deputy Managing Director David Lipton as Acting Managing Director of the IMF.”

The European Union leaders had agreed to name Christine Lagarde as the new head of the European Central Bank and sealed a deal on filling the EU’s other top four jobs after marathon talks that have exposed deep divisions in the bloc. Three days of summit negotiations that at times looked close to collapse ended with a deal that now must be approved by the European Parliament and was immediately rejected by the socialist and green bloc in the assembly in Strasbourg.