European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent. In an interview with French newspaper La Tribune Dimanche, Lagarde also expressed optimism regarding Europe's gas reserves situation, citing various factors contributing to her positive outlook.

Last month, the ECB implemented a record-high key interest rate of 4 per cent, signalling a strong commitment to addressing inflationary pressures. Lagarde emphasised that the sustained levels of the key ECB interest rates would play a crucial role in facilitating the timely return of inflation to the desired target.

"The key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," Reuters quoted Lagarde as saying during the interview conducted on October 2.

Despite acknowledging that inflation was currently on a significant downward trajectory, Lagarde remained optimistic about the short-term economic outlook. She cited several reasons for her confidence, including ongoing economic reforms taking place in Europe and notable improvements in the region's gas reserves situation.

Lagarde highlighted the importance of structural reforms being implemented in the European economy, underscoring the positive impact they could have on future economic performance.

In addition, she drew attention to the remarkable progress made in replenishing gas reserves, surpassing 90 per cent by September 2023. This development has bolstered Europe's preparedness for the upcoming winter season, providing a sense of confidence and security.

"This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence," Reuters noted Lagarde’s concluding remarks, emphasising the improved outlook for Europe's gas reserves situation.

(With inputs from Reuters)

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European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent.

European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent. In an interview with French newspaper La Tribune Dimanche, Lagarde also expressed optimism regarding Europe's gas reserves situation, citing various factors contributing to her positive outlook. Last month, the ECB implemented a record-high key interest rate of 4 per cent, signalling a strong commitment to addressing inflationary pressures. Lagarde emphasised that the sustained levels of the key ECB interest rates would play a crucial role in facilitating the timely return of inflation to the desired target. "The key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," Reuters quoted Lagarde as saying during the interview conducted on October 2. Despite acknowledging that inflation was currently on a significant downward trajectory, Lagarde remained optimistic about the short-term economic outlook. She cited several reasons for her confidence, including ongoing economic reforms taking place in Europe and notable improvements in the region's gas reserves situation. Lagarde highlighted the importance of structural reforms being implemented in the European economy, underscoring the positive impact they could have on future economic performance. In addition, she drew attention to the remarkable progress made in replenishing gas reserves, surpassing 90 per cent by September 2023. This development has bolstered Europe's preparedness for the upcoming winter season, providing a sense of confidence and security. "This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence," Reuters noted Lagarde’s concluding remarks, emphasising the improved outlook for Europe's gas reserves situation. (With inputs from Reuters) WATCH WION LIVE HERE

ECB's Lagarde expresses confidence in 2pc inflation target and Europe's gas reserves

Germany's best-selling tabloid Bild scathingly criticised European Central Bank (ECB) President Christine Lagarde on Saturday, accusing her of destroying the earnings and savings of ordinary people by tolerating a rise in inflation.

The article, echoing a Bild attack on Lagarde's predecessor Mario Draghi in 2019, may signal fresh hostility towards the ECB on the part of the German public, which has for a decade been sceptical of the bank`s ultra-easy policy.

Two days ago the bank left rates policy unchanged despite consumer price growth hitting a 13-year high. 
The newspaper called Lagarde "Madam Inflation,", accusing her of being a high-earner who liked wearing luxury fashion and saying she didn't seem to care about ordinary people's difficulties. "Christine Lagarde is melting pensions, wages and savings," it said.

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Asked about the article by Reuters, an ECB spokesperson noted that in her Thursday news conference Lagarde had acknowledged inflation is "clearly of concern" to citizens, and said policymakers did a "lot of soul-searching" before holding off on tightening policy.

Bild's attack comes a week after German central bank chief Jens Weidmann, an outspoken critic of ECB policy, quit his job, arguing that 10 years in the role is enough while also warning over inflation risks.

Inflation in the euro zone hit 4.1 per cent&nbsp;this month, equalling its all-time-high, while German inflation is even higher, likely approaching 5 per cent&nbsp;by year end.

Germany's best-selling tabloid Bild scathingly criticised European Central Bank (ECB) President Christine Lagarde on Saturday, accusing her of destroying the earnings and savings of ordinary people by tolerating a rise in inflation.

Germany's best-selling tabloid Bild scathingly criticised European Central Bank (ECB) President Christine Lagarde on Saturday, accusing her of destroying the earnings and savings of ordinary people by tolerating a rise in inflation. The article, echoing a Bild attack on Lagarde's predecessor Mario Draghi in 2019, may signal fresh hostility towards the ECB on the part of the German public, which has for a decade been sceptical of the bank`s ultra-easy policy. Two days ago the bank left rates policy unchanged despite consumer price growth hitting a 13-year high. The newspaper called Lagarde "Madam Inflation,", accusing her of being a high-earner who liked wearing luxury fashion and saying she didn't seem to care about ordinary people's difficulties. "Christine Lagarde is melting pensions, wages and savings," it said. Also Read | German Cup: Borussia Moenchengladbach hammer Bayern Munich 5-0 to enter third round Asked about the article by Reuters, an ECB spokesperson noted that in her Thursday news conference Lagarde had acknowledged inflation is "clearly of concern" to citizens, and said policymakers did a "lot of soul-searching" before holding off on tightening policy. Bild's attack comes a week after German central bank chief Jens Weidmann, an outspoken critic of ECB policy, quit his job, arguing that 10 years in the role is enough while also warning over inflation risks. Inflation in the euro zone hit 4.1 per cent this month, equalling its all-time-high, while German inflation is even higher, likely approaching 5 per cent by year end.

German tabloid attacks ECB chief Lagarde as 'Madam Inflation'

Former International Monetary Fund chief&nbsp;Christine Lagarde said <a href="https://www.wionews.com/world/mitch-mcconnell-slams-trumps-syria-withdrawal-as-strategic-nightmare-256849">President Donald Trump's</a> trade offensive against China could slash global economic growth and she critiqued his Twitter habits in an interview with US television program 60 Minutes.

Lagarde, who takes over leadership of the European Central Bank on November 1, called for world leaders to act like grownups and negotiate a solution to the trade conflicts, and called for "rational decisions."

Newly freed from the restraints of her previous post, where she would have had to guard her language, Lagarde said, "market stability should not be the subject of a tweet here, a tweet there."

"It requires consideration, thinking, quiet and measured and rational decisions,"&nbsp;she said of Trump in the interview due to air Sunday night.

Lagarde led the Washington-based crisis lender for eight years and previously was more cautious in comments about Trump since the United States is the main IMF shareholder.

In the interview, she warned that Trump’s trade war with China will give the global economy "a big haircut."&nbsp;

"My very, very strong message to all policymakers is please sit down like big men, many men in those rooms and put everything on the table, and try to deal bit by bit, piece by piece, so that we have certainty," she said, according to excerpts of the interview released by CBS News.

As she takes on the new role as a central banker, Lagarde also took a swipe at Trump's barrage of criticism of his own Federal Reserve Chairman Jerome Powell, whom Trump has called a "bonehead" among other insults.

"A central bank governor does best his job if he is independent."

Former International Monetary Fund chief Christine Lagarde said President Donald Trump's trade offensive against China could slash global economic growth and she critiqued his Twitter habits in an interview with US television program 60 Minutes.

Former International Monetary Fund chief Christine Lagarde said President Donald Trump's trade offensive against China could slash global economic growth and she critiqued his Twitter habits in an interview with US television program 60 Minutes. Lagarde, who takes over leadership of the European Central Bank on November 1, called for world leaders to act like grownups and negotiate a solution to the trade conflicts, and called for "rational decisions." Newly freed from the restraints of her previous post, where she would have had to guard her language, Lagarde said, "market stability should not be the subject of a tweet here, a tweet there." "It requires consideration, thinking, quiet and measured and rational decisions," she said of Trump in the interview due to air Sunday night. Lagarde led the Washington-based crisis lender for eight years and previously was more cautious in comments about Trump since the United States is the main IMF shareholder. In the interview, she warned that Trump’s trade war with China will give the global economy "a big haircut." "My very, very strong message to all policymakers is please sit down like big men, many men in those rooms and put everything on the table, and try to deal bit by bit, piece by piece, so that we have certainty," she said, according to excerpts of the interview released by CBS News. As she takes on the new role as a central banker, Lagarde also took a swipe at Trump's barrage of criticism of his own Federal Reserve Chairman Jerome Powell, whom Trump has called a "bonehead" among other insults. "A central bank governor does best his job if he is independent."

Former International Monetary Fund chief Lagarde takes swipe at Trump's Twitter habits

The Managing Director of the International Monetary Fund (IMF) Christine Lagarde has said that the multilateral institution stands ready to support Pakistan which is facing economic headwinds.

She said this on Sunday after <a href="http://www.wionews.com/south-asia/pakistan-pm-imran-khan-to-meet-imf-chief-lagarde-for-talks-on-bailout-196271">meeting Pakistani Prime Minister Imran Khan</a> who is in the United Arab Emirates to participate in the World Government Summit 2019 in Dubai.

Lagarde, after the meeting, said, “I reiterated that the IMF stands ready to support Pakistan. I also highlighted that decisive policies and a strong package of economic reforms would enable Pakistan to restore the resilience of its economy and lay the foundations for stronger and more inclusive growth."

She said her meeting with Khan was "good and constructive" wherein they discussed the recent "economic developments and prospects for Pakistan in the context of ongoing discussions toward an IMF-supported program".

"As emphasized in the new government’s policy agenda, protecting the poor and strengthening governance are key priorities to improve people’s living standards in a sustainable manner,” Lagarde further added.&nbsp;

Pakistan PM later tweeted on his meet with IMF chief and said, "In my meeting today with IMF Managing Director Christine Lagarde there was a convergence of our views on the need to carry out deep structural reforms to put the country on the path of sustainable development in which the most vulnerable segments of society are protected."

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In my meeting today with IMF Managing Director Christine Lagarde there was a convergence of our views on the need to carry out deep structural reforms to put the country on the path of sustainable development in which the most vulnerable segments of society are protected.
— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1094620029264502784?ref_src=twsrc%5Etfw">February 10, 2019</a></blockquote>
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Pakistan is in talks with IMF for a bailout programme. If agreed, this will be the 13th bailout for the South Asian country since the&nbsp;1980s. The last time Pakistan received a bailout from the IMF was in 2013.

A statement was also released by Pakistan's finance ministry which said that Pak&nbsp;Prime Minister "appreciated IMF’s support to Pakistan and shared his vision for nation-building", reiterating that Pakistan government is committed to "undertaking structural &amp; governance reforms and strengthening social protection in the country".

Both sides also agreed to continue the "deliberations between Pakistani authorities and IMF staff to "finalize an agreement on the contours of a program".

The global rating agency Standard &amp; Poor's (S&amp;P) downgraded Pakistan from B to B- with a stable outlook in the first week of February due to diminished growth prospects.

Pakistan and the United Arab Emirates (UAE), last month, signed <a href="http://www.wionews.com/south-asia/pakistan-uae-sign-3-billion-bailout-package-192149">a $3 billion bailout package</a>, as part of Abu Dhabi's support to boost the cash-strapped country's dwindling dollar reserves.

The Managing Director of the International Monetary Fund (IMF) Christine Lagarde has said that the multilateral institution stands ready to support Pakistan which is facing economic headwinds.

The Managing Director of the International Monetary Fund (IMF) Christine Lagarde has said that the multilateral institution stands ready to support Pakistan which is facing economic headwinds. She said this on Sunday after meeting Pakistani Prime Minister Imran Khan who is in the United Arab Emirates to participate in the World Government Summit 2019 in Dubai. Lagarde, after the meeting, said, “I reiterated that the IMF stands ready to support Pakistan. I also highlighted that decisive policies and a strong package of economic reforms would enable Pakistan to restore the resilience of its economy and lay the foundations for stronger and more inclusive growth." She said her meeting with Khan was "good and constructive" wherein they discussed the recent "economic developments and prospects for Pakistan in the context of ongoing discussions toward an IMF-supported program". "As emphasized in the new government’s policy agenda, protecting the poor and strengthening governance are key priorities to improve people’s living standards in a sustainable manner,” Lagarde further added. Pakistan PM later tweeted on his meet with IMF chief and said, "In my meeting today with IMF Managing Director Christine Lagarde there was a convergence of our views on the need to carry out deep structural reforms to put the country on the path of sustainable development in which the most vulnerable segments of society are protected." In my meeting today with IMF Managing Director Christine Lagarde there was a convergence of our views on the need to carry out deep structural reforms to put the country on the path of sustainable development in which the most vulnerable segments of society are protected. — Imran Khan (@ImranKhanPTI) February 10, 2019 × Pakistan is in talks with IMF for a bailout programme. If agreed, this will be the 13th bailout for the South Asian country since the 1980s. The last time Pakistan received a bailout from the IMF was in 2013. A statement was also released by Pakistan's finance ministry which said that Pak Prime Minister "appreciated IMF’s support to Pakistan and shared his vision for nation-building", reiterating that Pakistan government is committed to "undertaking structural & governance reforms and strengthening social protection in the country". Both sides also agreed to continue the "deliberations between Pakistani authorities and IMF staff to "finalize an agreement on the contours of a program". The global rating agency Standard & Poor's (S&P) downgraded Pakistan from B to B- with a stable outlook in the first week of February due to diminished growth prospects. Pakistan and the United Arab Emirates (UAE), last month, signed a $3 billion bailout package, as part of Abu Dhabi's support to boost the cash-strapped country's dwindling dollar reserves.

I reiterate our stand to support Pakistan: IMF chief Lagarde on bailout aid

Pakistani Prime Minister Imran Khan will meet International Monetary Fund (IMF) chief Christine Lagarde in Dubai on Sunday for talks on issues which have held up bailout negotiations, a Pakistani minister said on Saturday.

Pakistan is seeking its 13th bailout since the late 1980s to deal with a current account deficit that threatens to trigger a balance of payments crisis, but talks have been delayed by difficulties in reconciling IMF reform demands with Islamabad`s fears the push is too drastic and could hurt economic growth.

Information Minister Fawad Chaudhry told Reuters Khan will meet IMF Managing Director Christine Lagarde on the sidelines of the World Government Summit in Dubai.

"This will give us a chance to understand the IMF views and we will be able to give our version to (Lagarde)," said Chaudhry, who will accompany Khan to Dubai along with Finance Minister Asad Umar.

Chaudhry said Pakistan wants any agreed bailout package, which would be the country's second IMF bailout since 2013, to be the nation`s last such economic rescue by the IMF.&nbsp;

Officials had expected talks to conclude in November but they have been delayed as Islamabad harbours concerns that the programme could derail the economy and Khan`s plans for his term in office.

Pakistan has in the meantime sought financial assistance from Middle Eastern allies such as Saudi Arabia and the United Arab Emirates, who have loaned it in excess of $10 billion to ease the pressure on its dwindling foreign currency reserves.

"The problem is not the (IMF) deal, the problem is the condition attached to the deal," Chaudhry said.&nbsp;

"We don’t want conditions that hurt Pakistan’s growth prospects. We want a fair deal that can actually help Pakistan in the short term, without affecting our long-term economic goals."

The IMF talks come amid a worsening macroeconomic outlook, with growth expectations slashed for the current fiscal year to about 4 per cent from 6 per cent previously forecast.

On Saturday, Pakistan also revised its growth figures for the last financial year to 5.2 per cent from a previously reported 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said.

When the original estimate was reported in April by the government of Prime Minister Shahid Khaqan Abbasi it was hailed as the strongest growth in 13 years.

Before the revisions to last year`s GDP figures, Pakistan`s deficit to GDP ratio, estimated at 5.8 per cent in 2017-18, was expected to hit 6.9 per cent this year, according to IMF data.

Pakistani Prime Minister Imran Khan will meet International Monetary Fund (IMF) chief Christine Lagarde in Dubai on Sunday for talks on issues which have held up bailout negotiations, a Pakistani minister said on Saturday.

Pakistani Prime Minister Imran Khan will meet International Monetary Fund (IMF) chief Christine Lagarde in Dubai on Sunday for talks on issues which have held up bailout negotiations, a Pakistani minister said on Saturday. Pakistan is seeking its 13th bailout since the late 1980s to deal with a current account deficit that threatens to trigger a balance of payments crisis, but talks have been delayed by difficulties in reconciling IMF reform demands with Islamabad`s fears the push is too drastic and could hurt economic growth. Information Minister Fawad Chaudhry told Reuters Khan will meet IMF Managing Director Christine Lagarde on the sidelines of the World Government Summit in Dubai. "This will give us a chance to understand the IMF views and we will be able to give our version to (Lagarde)," said Chaudhry, who will accompany Khan to Dubai along with Finance Minister Asad Umar. Chaudhry said Pakistan wants any agreed bailout package, which would be the country's second IMF bailout since 2013, to be the nation`s last such economic rescue by the IMF. Officials had expected talks to conclude in November but they have been delayed as Islamabad harbours concerns that the programme could derail the economy and Khan`s plans for his term in office. Pakistan has in the meantime sought financial assistance from Middle Eastern allies such as Saudi Arabia and the United Arab Emirates, who have loaned it in excess of $10 billion to ease the pressure on its dwindling foreign currency reserves. "The problem is not the (IMF) deal, the problem is the condition attached to the deal," Chaudhry said. "We don’t want conditions that hurt Pakistan’s growth prospects. We want a fair deal that can actually help Pakistan in the short term, without affecting our long-term economic goals." The IMF talks come amid a worsening macroeconomic outlook, with growth expectations slashed for the current fiscal year to about 4 per cent from 6 per cent previously forecast. On Saturday, Pakistan also revised its growth figures for the last financial year to 5.2 per cent from a previously reported 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said. When the original estimate was reported in April by the government of Prime Minister Shahid Khaqan Abbasi it was hailed as the strongest growth in 13 years. Before the revisions to last year`s GDP figures, Pakistan`s deficit to GDP ratio, estimated at 5.8 per cent in 2017-18, was expected to hit 6.9 per cent this year, according to IMF data.

Pakistan PM Imran Khan to meet IMF chief Lagarde for talks on bailout

IMF chief Christine Lagarde said Saturday she was "horrified" by reports about the fate of Saudi dissident Jamal Khashoggi but still plans to attend an economic meeting in Riyadh this month.

As questions swirl over the fate of Khashoggi -- a Saudi critic who has not been seen since he walked into the kingdom's consulate in Istanbul on October 2 -- some big business names and media outlets have pulled out of the Kingdom's second Future Investment Initiative.&nbsp;

But Lagarde said her plans were unchanged for now, despite international uproar over the case.

"Human rights, freedom of information are essential rights and horrifying things have been reported and I am horrified," she told reporters in Bali where the IMF is holding annual meetings.

"But I have to conduct the business of the IMF in all corners in the world and with many governments."

"When I visit a country, I always speak my mind... So at this point of time my intention is to not change my plans and to be very attentive to the information that is coming out in the next few days."

Her comments came shortly after US Treasury Secretary Steven Mnuchin said he also still planned to attend the October 23-25 meeting, dubbed "Davos in the Desert".&nbsp;

"The answer is for now I am" still going, Mnuchin said.

"If more information comes out over the next week, I will obviously take that into account."

"Obviously I want to express concern for Mr. Khashoggi and his family," he added.

"We look forward to getting results of this investigation."

UN chief Antonio Guterres meanwhile told the BBC: "We need to have a strong request for the truth to be clear."

"We need to know exactly what has happened and we need to know exactly who is responsible... we need to find ways in which accountability is also demanded," he added.

The UN secretary general said he felt "this kind of incident is multiplying."

"I am feeling worried (at) this apparent new normal," he said in Bali.

Riyadh on Saturday dismissed accusations that authorities there had ordered Khashoggi be murdered by a hit squad inside its Istanbul consulate as "lies and baseless allegations".

But the row has intensified with the Washington Post reporting that Turkish officials have recordings made from inside the building that allegedly prove their claims Khashoggi was tortured and killed at the consulate.

Bloomberg, the Financial Times, The Economist and The New York Times have withdrawn as media sponsors from the event amid questions about the missing man's fate.

The CEO of ride-hailing app Uber, Dara Khosrowshahi, said that he will no longer be attending the event unless "a substantially different set of facts emerges".

British entrepreneur Richard Branson said he would suspend two directorships linked to tourism projects in Saudi Arabia over the issue.

Amnesty International demanded the Saudi authorities reveal what happened to Khashoggi as it said Riyadh was "responsible at a minimum for enforced disappearance".

IMF chief Christine Lagarde said Saturday she was "horrified" by reports about the fate of Saudi dissident Jamal Khashoggi but still plans to attend an economic meeting in Riyadh this month.

IMF chief Christine Lagarde said Saturday she was "horrified" by reports about the fate of Saudi dissident Jamal Khashoggi but still plans to attend an economic meeting in Riyadh this month. As questions swirl over the fate of Khashoggi -- a Saudi critic who has not been seen since he walked into the kingdom's consulate in Istanbul on October 2 -- some big business names and media outlets have pulled out of the Kingdom's second Future Investment Initiative. But Lagarde said her plans were unchanged for now, despite international uproar over the case. "Human rights, freedom of information are essential rights and horrifying things have been reported and I am horrified," she told reporters in Bali where the IMF is holding annual meetings. "But I have to conduct the business of the IMF in all corners in the world and with many governments." "When I visit a country, I always speak my mind... So at this point of time my intention is to not change my plans and to be very attentive to the information that is coming out in the next few days." Her comments came shortly after US Treasury Secretary Steven Mnuchin said he also still planned to attend the October 23-25 meeting, dubbed "Davos in the Desert". "The answer is for now I am" still going, Mnuchin said. "If more information comes out over the next week, I will obviously take that into account." "Obviously I want to express concern for Mr. Khashoggi and his family," he added. "We look forward to getting results of this investigation." UN chief Antonio Guterres meanwhile told the BBC: "We need to have a strong request for the truth to be clear." "We need to know exactly what has happened and we need to know exactly who is responsible... we need to find ways in which accountability is also demanded," he added. The UN secretary general said he felt "this kind of incident is multiplying." "I am feeling worried (at) this apparent new normal," he said in Bali. Riyadh on Saturday dismissed accusations that authorities there had ordered Khashoggi be murdered by a hit squad inside its Istanbul consulate as "lies and baseless allegations". But the row has intensified with the Washington Post reporting that Turkish officials have recordings made from inside the building that allegedly prove their claims Khashoggi was tortured and killed at the consulate. Bloomberg, the Financial Times, The Economist and The New York Times have withdrawn as media sponsors from the event amid questions about the missing man's fate. The CEO of ride-hailing app Uber, Dara Khosrowshahi, said that he will no longer be attending the event unless "a substantially different set of facts emerges". British entrepreneur Richard Branson said he would suspend two directorships linked to tourism projects in Saudi Arabia over the issue. Amnesty International demanded the Saudi authorities reveal what happened to Khashoggi as it said Riyadh was "responsible at a minimum for enforced disappearance".

IMF chief 'horrified' by Khashoggi case, still plans Saudi trip

International Monetary Fund chief Christine Lagarde goes on trial Monday over a &euro;405 million state payout to a flamboyant tycoon wile she was French finance minister, news agency AFP reports.

If found guilty, Lagarde could receive a one-year prison sentence and a 15,000 Euro ($15,900) fine.

Lagarde denies the charges of &ldquo;negligence&rdquo;. She argues that she was acting &ldquo;in the state&rsquo;s interest&rdquo; in making the payment to Bernard Tapie, a close associate of Nicolas Sarkozy, who was then president.

The case threatens to dent the IMF&#39;s credibility -- Lagarde is the third IMF chief to face trial.

Her predecessor, Dominique Strauss-Kahn, was forced to resign after being accused of sexually assaulting a maid in 2011.

The IMF board has backed Ms Lagarde since France began legal proceedings over the payout in 2011.&nbsp;

She will be tried by the Court of Justice of the Republic, a tribunal that hears cases against ministers accused of wrongdoing in the discharge of their duties, AFP reports.

The accusations stem from Lagarde&#39;s handling of a dispute with Tapie, who claimed a state bank had defrauded him when he sold Adidas in 1993 to a group of investors. After a year, Adidas was sold for more than double the amount he was paid, The Telegraph UK reports.&nbsp;

Initially, the state resisted his claims but when Lagarde became finance minister in 2007, she ordered that Tapie&#39;s long-running battle with the state be resolved by arbitration, AFP said in its report.&nbsp;

In 2008, Tapie was awarded compensation of 404 million euros ($427 million).

Investigators suspect the arbitration process was rigged in favour of Tapie, who had supported Sarkozy during his election campaign in 2007.

Although she is not accused of personally profiting from the payment, Lagarde has been criticised for failing to challenge the award.

She maintains the case is &ldquo;politically motivated&rdquo;.

(WION with inputs from AFP) 
&nbsp;

If found guilty, Lagarde could receive a one-year prison sentence and a Euro 15,000 fine

International Monetary Fund chief Christine Lagarde goes on trial Monday over a €405 million state payout to a flamboyant tycoon wile she was French finance minister, news agency AFP reports. If found guilty, Lagarde could receive a one-year prison sentence and a 15,000 Euro ($15,900) fine. Lagarde denies the charges of “negligence”. She argues that she was acting “in the state’s interest” in making the payment to Bernard Tapie, a close associate of Nicolas Sarkozy, who was then president. The case threatens to dent the IMF's credibility -- Lagarde is the third IMF chief to face trial. Her predecessor, Dominique Strauss-Kahn, was forced to resign after being accused of sexually assaulting a maid in 2011. The IMF board has backed Ms Lagarde since France began legal proceedings over the payout in 2011. She will be tried by the Court of Justice of the Republic, a tribunal that hears cases against ministers accused of wrongdoing in the discharge of their duties, AFP reports. The accusations stem from Lagarde's handling of a dispute with Tapie, who claimed a state bank had defrauded him when he sold Adidas in 1993 to a group of investors. After a year, Adidas was sold for more than double the amount he was paid, The Telegraph UK reports. Initially, the state resisted his claims but when Lagarde became finance minister in 2007, she ordered that Tapie's long-running battle with the state be resolved by arbitration, AFP said in its report. In 2008, Tapie was awarded compensation of 404 million euros ($427 million). Investigators suspect the arbitration process was rigged in favour of Tapie, who had supported Sarkozy during his election campaign in 2007. Although she is not accused of personally profiting from the payment, Lagarde has been criticised for failing to challenge the award. She maintains the case is “politically motivated”. (WION with inputs from AFP)

IMF chief Lagarde on trial in France over tycoon case

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