US backs Rato for IMF

America has thrown its weight behind outgoing Spanish finance minister Rodrigo Rato as the next managing director of the International Monetary Fund.

And the IMF says there is a strong possibility Rato will now pip France's Jean Lemierre to the post.

In a move seen by some as the US thumbing its nose at France after the rift over Iraq, the Wall Street Journal reports Washington has sided with 18 Latin American countries which have backed the Spaniard.

France and Germany have solidly supported Frenchman Jean Lemierre who is currently head of the European Bank for Reconstruction and Development.

Sources at the IMF now say there is a 70 to 80 per cent chance that Rato will be picked.

Rato was finance minister in Spain's centre right government until last month when Spain voted in the socialists following the Madrid terrorist attacks.

But the IMF also warned if France and Germany retaliate by blocking Rato's nomination it could lead to both candidates being withdrawn from the race.

The IMF is an international fund which responds to global economic crises. It is traditionally lead by a European whilst its sister organisation the World Bank is placed by the US.

Former managing director Horst Kohler stepped down last month.

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