Kristalina Georgieva, the only candidate for her succession at the IMF

Mexico City. Kristalina Georgieva, current managing director of the International Monetary Fund, was nominated as the sole candidate to take over the position, a designation process that would have to be completed no later than this month, the organization reported.

“The deadline to submit candidates for the position of next managing director closed on Wednesday, April 3, 2024. One candidate, the current Managing Director of the IMF, has been nominated,” reported the coordinators of the executive board, Afonso Bevilaqua and Abdullah BinZarah.

“The Board will now proceed in accordance with the process outlined in the decision of March 13, 2024, including holding meetings between the candidate, Ms. Georgieva, and the executive directors. The board’s goal is to complete the selection process as soon as possible and, at the latest, by the end of April 2024,” they stated.

The IMF Executive Board also concluded the 2024 Review of the Adequacy of the Fund’s Precautionary Balances, which are composed of general and special reserves and serve as a cushion to protect the financial institution against possible losses resulting from credit risks, income and other financial risks.

“For this reason, they help protect the value of reserve assets represented by member countries’ positions in the Fund and support the asset exchange through which the Fund provides financial assistance to countries with balance of payments needs. ”explained the IMF in a statement.

The IMF board concluded that Precautionary Balances are expected to reach 25 billion special drawing rights (SDR), around 547 thousand 882.5 million pesos, by the end of fiscal 2024, for the first time since the introduction of the framework.

Most board members agreed to maintain the current medium-term target for precautionary balances of 25 billion SDR, but all supported increasing the minimum floor for precautionary balances from 15 billion to 20 billion, due to “ the need to maintain an adequate minimum level of reserves to protect against an unexpected increase in credit or a deterioration in credit risks and to ensure sufficient investment income.”