India keeps its cards closed on support for new IMF chief

NEW DELHI: India will endorse a name for the top job at the International Monetary Fund (IMF) only after the final list of potential candidates is released, Economic Affairs Secretary R Gopalan has told ET. The government has not yet committed to any single candidate, he said. "We have not given any assurance to French Finance Minister Christine Lagarde," Gopalan said. He said the government does not intend to dissuade the other candidate, Mexican central bank governor Agustin Carstens, when he visits India this Friday.

Carstens, 52, has earlier served as Mexico's finance minister. He is now a member of the steering committee of the G-20 Financial Stability Board (FSB). Carstens will be in India on Friday to seek Delhi’s backing for his candidature for the IMF top post. Finance Minister Pranab Mukherjee has described Carstens as a "competent person.” He said the government was also in discussions with him. Delhi is yet to open its cards and remained non-committal to Lagarde who had come calling on Tuesday. "We are working on a consensus," Mukherjee had said after meeting Lagarde. Lagarde has the backing of UK, Germany and other European nations and is now in China to seek its support. China has given no indication of who it will back.

Media reports say Beijing wants the next IMF leader to be selected through “democratic negotiations.” So far only two formal candidates are in the fray for the post of the managing director at IMF and Lagarde is believed to be leading the race. China, India and other emerging nations see Europe's traditional lock on the top job at the Washington-based IMF outdated and their support is considered key to the success of any candidate’s bid. However, a consensus is yet to be reached on any candidate from the Brics bloc, which includes Brazil, Russia, India, China and South Africa. The post of IMF chief fell vacant after the ignominious departure of Dominique Strauss-Kahn in the wake of sexual assault charges , which he denies.

The next leader of the IMF, which lends money to countries to help resolve balance of payment and financial crises, will be elected on June 30 by the body's 24-member executive board. The developed world has a majority of votes at the IMF. The US also enjoys a virtual veto on any decision because of its 16% vote.