Race To Be Next IMF Chief Down To Two

The board of the International Monetary Fund has shortlisted two candidates to replace Dominique Strauss Kahn as head of the organisation.

French finance minister Christine Lagarde and Mexican central bank chief Agustin Carstens are the only two contenders for the key post.

It became vacant when Mr Strauss Khan stood down last month after being arrested on charges of sexually assaulting a hotel chambermaid in New York.

In limiting the shortlist to two, the IMF's board have stopped Bank of Israel governor Stanley Fischer from entering the race.

In a surprise move, members of the board rejected changing IMF's rule to clear the way for 67-year-old Fischer to run, according to the Reuters news agency.

Current rules stipulate an age limit of 65 for an incoming chief of the organisation.

An IMF board statement said: "The executive board will meet with the candidates in Washington and, thereafter, meet to discuss the strengths of the candidates and make a selection."

It reiterated that it planned to complete the selection by June 30.

Front-runner Ms Lagarde is backed by the European Union and a handful of other countries including Indonesia, the first big emerging market to declare its support for her.

Mr Carstens has the support of a dozen Latin American countries, including Colombia.

Despite the race for the post being one of the most hotly contested in IMF history, is widely expected to end with Europe maintaining its 65-year grip on the job.