The scandal may affect confidence in the International Monetary Fund and the World Bank, according to the US Treasury

US Treasury Secretary, Janet Yellen, warned that a Scandal about the reliability of the ranking of countries on the business climate may harm confidence in the IMF (International Monetary Fund) and the World Bank unless institutions take strong action to prevent malpractice and support whistleblowers.

Yellen also said the US would “closely monitor developments and assess new facts and findings if they become available” after deciding earlier this week that the controversy did not justify the dismissal of International Monetary Fund Managing Director Kristalina Georgieva, who was tasked by a law firm to investigate the issue of undue pressure. on members of staff world bank.

Search results on the topic “World Bank”It can reduce trust in financial institutions Yellen said Thursday, if strong measures are not taken to enhance transparency, protect data integrity and prevent malpractice. “It is also important that international financial institutions evaluate ways to improve internal systems to protect whistleblowers and complaints.”

The episode, which occurred in 2017 when Georgieva was executive director of the World Bank, nearly cost the Bulgarian economist her current position as head of the International Monetary Fund. The fund’s executive board reviewed the allegations, but ultimately ruled on Monday that she did not play an inappropriate role in the episode. Georgieva strongly denied any misconduct in the World Bank report and the International Monetary Fund’s board on Monday affirmed its “full confidence” in Georgieva.

The G20 has approved a review of the IMF surcharges demanded by Argentina

‘legitimate’ concerns

Janet Yellen’s comments came three days after she said the law firm’s investigation “raised legitimate issues and concerns.”

On Thursday, Georgieva attended a news conference with Swedish Finance Minister Magdalena Andersson, and when asked about Yellen’s remarks, the IMF chief referred the question to Andersen, who chairs the IMF’s main steering committee. Anderson cited the IMF board’s opinion that Georgieva enjoys the unanimity and full support of the board.

Thursday’s statement, in which Yellen praised the progress made this week during global meetings in Washington, came at the annual session of the International Monetary Fund and the World Bank, as finance headlines from around the world addressed issues ranging from climate change and the current pandemic to the global. Inflation and debt of developing countries.

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