Russia challenges EU over IMF top job

MOSCOW (AFP) - Russia said on Wednesday it had nominated former Czech central bank chief Josef Tosovsky to stand against the EU's candidate to head the International Monetary Fund (IMF).

But the government in the Czech Republic, which joined the EU in 2004, made clear it had nothing to do with Tosovsky's nomination and said it backed the EU's choice, former French finance minister Dominique Strauss-Kahn.

In a statement the Russian finance ministry said: "The Russian representative on the board of the International Monetary Fund nominated Josef Tosovsky for the post of managing director yesterday."

Tosovsky's nomination makes him the only rival to Strauss-Kahn to succeed outgoing chief Rodrigo Rato to the post.

Strauss-Kahn was nominated by the European Union under an unwritten agreement that the EU always nominates the IMF boss.

"We have conducted wide consultations with colleagues from other countries and we are certain that the majority want a managing director to be chosen on a competitive basis for professional qualities," the Russian finance ministry said.

"That is why we have chosen to put forward an alternative candidate," the statement continued.

Last month, a group of 24 developing countries, including China, India and Brazil, protested against the practice of Europe nominating the head of the IMF and called for "a transparent selection process."

Reacting to the nomination, Czech Finance Minister Miroslav Kalousek said on Wednesday that Tosovsky did not have the backing of the Czech Republic and instead voiced support for Dominique Strauss-Kahn.

The managing director of the IMF has traditionally been named by the European Union, while the head of the World Bank, also based in Washington, is generally named by the United States.

The IMF has said it will accept applications for the post until August 31 and the executive board will then consider the candidates in September. Three Frenchmen have held the job for more than 30 years of the IMF's 61 years.

Russian President Vladimir Putin earlier this year called for a revolution in world economic relations, saying international institutions created by the West were "archaic, undemocratic and inflexible."

Russia was a major IMF debtor during the 1990s when billions of dollars from the institution helped keep the Russian economy afloat.
Under Putin, it has paid back 22 billion dollars of debt in full.