IMF "confident" in its managing director Christine Lagarde

The International Monetary Fund has stated it continues to have "confidence" in its managing director Christine Lagarde.

An IMF spokesman Jerry Rice said the fund's board backed Lagarde despite a French inquiry into alleged abuse of power, relating to her time as French finance minister and involvement in the payment of compensation to businessman Bernard Tapie. The Paris apartment of Christine Lagarde was searched by investigators last week.

Mr Tapie is a notorious businessman who sued Credit Lyonnais.

After years in the courts, the case was referred by Ms Lagarde to an arbitration panel in 2007 and she approved its decision to award damages.

Ms Lagarde, who took over as IMF chief in 2011, denies any wrongdoing, TASS reported.