IMF head Christine Lagarde found guilty of negligence by French court

Washington: International Monetary Fund (IMF) head Christine Lagarde was found guilty of negligence by a French Court on Monday in a issue related with massive payout to a tycoon when she was finance minister.

However, Lagarde will escape being fined or imprisoned.

Lagarde was found to be at fault over her decision to let a dispute over Bernard Tapie`s sale of the Adidas sports brand to Credit Lyonnais bank be resolved by a private arbitration panel rather than the usual courts, and then of failing to challenge the 404-million-euro ($422 million) award that followed.

The International Monetary Fund board is expected to meet shortly to discuss the implications of the surprise guilty verdict against IMF chief Christine Lagarde today in a French court.

"The Executive Board has met on previous occasions to consider developments related to the legal proceedings in France. It is expected that the Board will meet again shortly to consider the most recent developments," fund spokesman Gerry Rice said in a statement.

With AFP Inputs