A Bulgarian economist who grew up when her country was a communist nation has been selected to be the next leader of one of capitalism’s premier institutions, the 189-nation International Monetary Fund.
Kristalina Georgieva, a top World Bank official, was chosen by the IMF’s executive board on Wednesday to become the IMF’s managing director. She succeeds Christine Lagarde who is stepping down to take over as head of the European Central Bank.
The IMF is the world’s lender of last resort, providing emergency loans when countries are facing financial crisis. Georgieva takes over at a time when the global economy is slowing and the two biggest economies, the United States and China, are engaged in an escalating trade war.
The troubles have raised worries that the global economy could dip into a recession. Last year, Argentina was forced to seek a $57 billion bailout package from the IMF, the largest in the institution’s history.
Speaking to reporters after the IMF’s 24-member board approved her nomination, Georgieva cited a host of challenges from disappointing global growth to trade tensions and high debt burdens in many countries.