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IMF chief Christine Lagarde to stand trial over payout

Christine Lagarde is accused of negligence. Credit: Reuters

International Monetary Fund chief Christine Lagarde is to stand trial for her role in a £336 million payout to a businessman.

Mrs Lagarde is accused of negligence by improperly signing off on the decision to allow an out-of-court arbitration in a dispute between Bernard Tapie, a supporter of former president Nicolas Sarkozy, and the state in 2008. She was French finance minister at the time.

Mrs Lagarde had appealed against a judge's order for her to stand trial, but France's highest appeals court has ruled she must now do so.

Arbitration judges ruled in Mr Tapie's favour and ordered the state payout to him, but appeals courts have since thrown out the settlement decision.

IMF's Lagarde 'to face trial for alleged negligence'

Media reports say that Christine Lagarde has been ordered to face trial. Credit: Reuters

Christine Lagarde, the head of the International Monetary Fund (IMF), has been ordered to face trial over her role in a pay-out of some 400 million euros (£291 million) to businessman Bernard Tapie according to French media.

Lagarde denies any wrongdoing and said in a statement released by adviser Marc Vanghelder that she "always acted in this affair in the interest of the state and in respect of the law".

The inquiry into French businessman Bernard Tapie has involved several of former president Nicolas Sarkozy's cabinet members, including Lagarde, who was finance minister.

France's main prosecutor recommended in September that magistrates drop their investigation into Lagarde for alleged negligence with regard to the affair.

Tapie was awarded €403 million (£321 million) in a 2008 arbitration payment under Sarkozy's presidency to settle a dispute with the now-defunct state-owned bank Credit Lyonnais over a share sale in 1993.

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Lagarde: Greek deal 'is a first step to rebuilding growth'

International Monetary Fund (IMF) Managing Director Christine Lagarde talks to Greek Finance Minister Euclid Tsakalotos. Credit: Reuters

International Monetary Fund (IMF) Managing Director Christine Lagarde said that the deal on Greek debt is "a first step."

Without doubt, we have the feeling that it's a first step to rebuild growth. Now we have to implement the measures and continue with the steps.

– Christine Lagarde

The IMF is 'ready to continue supporting Greece'

The International Monetary Fund (IMF) is ready to continue supporting Greece and looks forward to talks with the country's new government, IMF chief Christine Lagarde said.

"We stand ready to continue supporting Greece, and look forward to discussions with the new government," Lagarde said in a statement.

IMF chief: UK leading the global recovery in 'eloquent way'

Britain and the US are leading global recovery, the head of the IMF has said.

In a major boost for David Cameron, Christine Lagarde praised the UK's "eloquent and convincing" lead in the European Union's battle for prosperity.

Prime Minister David Cameron and IMF managing director Christine Lagarde in Washington. Credit: RTV

At the start of roundtable discussion in Washington, which she co-hosted with the Prime Minister, Lagarde said growth in the UK "is improving, the deficit has been reduced, and where the unemployment is going down."

"Certainly from a global perspective this is exactly the sort of result that we would like to see," she added.

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IMF chief Lagarde: Formal investigation 'is without basis'

International Monetary Fund chief Christine Lagarde has said the decision to formally investigate her over negligence claims was "without basis".

In a statement after a fourth round of questioning before magistrates, Lagarde said she was returning to work in Washington later in the day.

International Monetary Fund chief Christine Lagarde said the decision was 'without basis'. Credit: Olivier Douliery/ABACA USA/Empics Entertainment

"After three years of proceedings, dozens of hours of questioning, the court found from the evidence that I committed no offence, and the only allegation is that I was not sufficiently vigilant," Lagarde said.

IMF chief 'under investigation' over negligence claims

International Monetary Fund chief Christine Lagarde has been placed under formal investigation for negligence relating to a long-running political fraud case, an unnamed source has told Reuters.

Lagarde will appeal the French magistrates' decision to place her under formal investigation, saying the allegation of negligence was unfounded, the source stated.

IMF chief Christine Lagarde has said the allegation of negligence was unfounded. Credit: Laura Lean/PA Wire

The inquiry into French businessman Bernard Tapie has embroiled several of former president Nicolas Sarkozy's cabinet members, including Lagarde, who was finance minister.

Tapie was awarded €403 million (£321 million) in a 2008 arbitration payment under Sarkozy's presidency to settle a dispute with the now-defunct state-owned bank Credit Lyonnais over a share sale in 1993.

Christine Lagarde: 'I'm not a candidate for EC job'

The head of the IMF, Christine Lagarde, has firmly denied suggestions that she may become the next president of the European Commission.

Speaking at an IMF press conference in London, Ms Lagarde insisted: "I'm not a candidate and the reason I'm not a candidate is I have a job and it's a job I happen to think is rather important at the moment."

She also made a reference to the 70th anniversary of the D-Day landings, saying: "When you start something you've got to finish the job, that's what a few people did 70 years ago, thank goodness."

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