International Monetary Fund chief, Lagarde, announces resignation

What influenced Lagarde's resignation: About 2 weeks ago, the EU Economic and Financial Affairs Council adopted a formal recommendation to nominate Lagarde as President of the European Central Bank (ECB).

In a statement, Lagarde said she had made the decision to quit in order to create room for the quick appointment of her successor.

As head of the IMF, Lagarde coordinated large bailout loans for troubled EU nations like Greece, in concert with the ECB and the European Union.

"The Executive Board has the utmost confidence in Mr. David Lipton, who remains Acting Managing Director of the Fund in the interim period".

The Executive Board of the fund said this in a statement issued by it on Tuesday in Washington D.C., adding that it has accepted Lagarde's resignation with effect from September 12.

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The European parliament will hold a nonbinding vote on Lagarde's appointment, which is expected to be finalized by EU leaders at a regular summit on October 17-18.

Lagarde stepped away from the International Monetary Fund leadership post she has held since 2011, sparking a wave of speculation about who would replace her.

Other names being floated include Bank of Finland Governor Olli Rehn, as well as ECB executive board member Benoit Coeure.

Early candidates mentioned as possible successors to Lagarde include Mark Carney, a Canadian who also holds British and Irish citizenship and whose term as leader of the Bank of England is up in January; French politician Pierre Moscovici, who is the European Union finance commissioner, and former British finance minister George Osborne. She also advocated the benefits of trade, global growth and women's empowerment.

Her second five-year term as head of the International Monetary Fund was not due to end until July 2021. While her confirmation could be lengthy, it is likely to be largely a formality as long as the euro zone's biggest member states - Germany, France and Italy - are in unity. At the ECB, Lagarde would face the challenge of having to stimulate inflation and growth.

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