Three hopefuls to succeed Strauss-Kahn

The IMF’s executive board met yesterday as the campaign to find a replacement for scandal-tainted former chief Dominique Strauss-Kahn reels from the unexpected twist of a dark horse candidacy.

Bank of Israel Governor Stanley Fischer publicly announced his bid to become managing director after the close of nominations on Friday, creating a three-way race with France’s Christine Lagarde and Mexico’s Agustin Carstens.

Ms Lagarde scooped up endorsements on Sunday from Egypt, the United Arab Emirates and Indonesia, confirming her status as the favourite to succeed Mr Strauss-Kahn, who resigned in May after being charged with sexually assaulting a hotel maid.

“I am very confident, particularly after several meetings here in Egypt,” Ms Lagarde told reporters after talks in Cairo with her Egyptian counterpart Samir Radwan. “We have had excellent meetings.”

Her main rival had been Mr Carstens, the head of Mexico’s Central Bank, who is trying to break the mould of always having a European in the top job at the International Monetary Fund and an American at the World Bank.

But Mr Fischer’s candidacy, announced on Saturday, throws a wild card into the deliberations of the 24-member executive board, who are expected to agree by consensus on a candidate by the end of June. Mr Fischer, 67, is credited for guiding Israel’s economy through the global crisis. With years of experience at the IMF and the World Bank, the post would fit him “like a glove”, said Israel’s Finance Minister Yuval Steinitz.

In an interview with the Wall Street Journal, Mr Fischer said his training as an economist would be “essential” to running the IMF and dealing with economic crises, setting himself in direct opposition to Ms Lagarde, a lawyer by training.

But Mr Fischer’s dual US-Israeli citizenship could be an obstacle to his candidacy. And at 67, his age is another handicap, as IMF rules usually cap applications for the top job at 65.

In Ms Lagarde, France’s Finance Minister, board members would have someone intimately up to speed on Europe’s crisis du jour, the crumbling Greek rescue, as well as a leader in the much-needed reform of the global financial system.

A lawyer by training, the 55-year-old Paris native became France’s longest serving Finance Minister earlier this month, having held the position since 2007.

In Mr Carstens, they would have someone who has already served three years as the IMF’s number three and who could satisfy calls by developing countries for new blood at the top of the world lender.

But Mr Carstens has strained to gather endorsements, even in Latin America. An emerging economy bloc has not coalesced behind the candidate.