Lagarde resigns, race begins for new IMF chief

International Monetary Fund chief Christine Lagarde submitted her resignation from the global crisis lender Tuesday, citing more clarity about her nomination to lead the European Central Bank as European legislators approved a new top bureaucrat. Lagarde said in a statement her resignation was effective Sept. 12, firing the starting gun for the IMF’s search for her successor, which is likely to be another European.

“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,” Lagarde said in a statement. She said her resignation would expedite the selection for the next head of the IMF. IMF succession is expected to be a major topic of discussion among G-7 finance ministers and central bank governors meeting Wednesday and Thursday in Chantilly, France, amid concerns that slowing global growth and trade conflicts will pressure vulnerable economies.

Lagarde’s resignation, first reported by Reuters, came two weeks after her nomination on July 2 for the ECB’s top job. She did not immediately quit the IMF because of uncertainty over whether the new European Parliament would support her and other new EU leadership positions, sources told Reuters.