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Germany says prospects for European IMF head good

BERLIN: German Chancellor Gerhard Schroeder's foreign policy adviser said on Friday the prospects for a European leading the International Monetary Fund were good, despite the lack of agreement in a ballot on Thursday.

Michael Steiner told ARD television Schroeder would meet Portuguese President Antonio Guterres, whose country holds the rotating European Union presidency, after Germany's EU-backed candidate Caio Koch-Weser failed to win a mandate. "This is a great result for the candidate. We're delighted by this result," Steiner said. "This is a tough fight. We have to look ahead."

Germany has declined to comment on whether Germany and the EU would continue to promote the candidacy of Koch-Weser who the United States has said is not suitable for the job or whether they would look for another candidate.

The IMF said earlier Koch-Weser won the largest number of votes cast in an informal ballot. Acting IMF managing director Stanley Fischer received the second largest number, followed by Japan's Eisuke Sakakibara. The fund did not detail the votes for the three candidates, but monetary sources said a consensus had not yet been found.

The IMF has been without a leader since France's Michel Camdessus quit last month. Koch-Weser, a German deputy finance minister and a former World Bank executive, won EU backing for his candidacy only after lengthy lobbying from Germany. -Reuters