IMF chief Christine Lagarde all set to face trial

Paris: A French prosecutor on Friday said IMF chief Christine Lagarde should stand trial for her handling of a massive state payout to tycoon Bernard Tapie in 2008 when she was France’s finance minister.

The prosecutor recommended the rejection of a challenge by Lagarde to a December court order for her to stand trial for negligence in the affair, which saw Tapie receive $433 million in taxpayer money.

The ruling is expected on July 22. If the order is upheld, Lagarde, 60, will be tried in the Law Court of the Republic.

Lagarde was placed under formal investigation in 2014 for negligence in a protracted legal drama pitting Tapie against a bank which he accused of defrauding him during his sale of sports clothing giant Adidas in the 1990s.

Lagarde, who faces a year in jail if convicted as well as fine of $16,000, has denied wrongdoing or that she acted on then president Nicolas Sarkozy’s orders.

She was finance minister under Sarkozy in 2008 when she decided to allow arbitration in the dispute between Tapie and Credit Lyonnais.