Lagarde is sworn in as new IMF head chief

France’s former Finance Minister Christine Lagarde was sworn in today as International Monetary Fund’s new Managing Director for a five year term. Lagarde replaces Dominique Strauss-Kahn who was forced to resign in the midst of a sex scandal involving a New York Hotel maid accusation of rape.

Lagarde, 55, is to serve five years as managing director of the world's most important crisis lender after three previous directors, all Europeans, left the job early, according to an IMF statement released today.

She was given a pay package of US$437,221 in annual salary net of any taxes, and US$78,257 in allowances for maintaining a "scale of living appropriate" to her position. According to the IMF she is expected “to observe the highest standards of ethical conduct, consistent with the values of integrity, impartiality and discretion.”

The Fund also said that she was allowed to “be a member of a political party and contribute funds to the party or to individual candidates, but could not attend political party meetings, assume any leadership role within a political party, or otherwise engage in partisan political activity, as this would not be compatible with your duties as Managing Director of the Fund.”

Strauss-Kahn resigned on May 18, five days after he was arrested in New York on allegations that he sexually assaulted a hotel maid. Lagarde was regarded as the favorite for the job in a most anticipated race that after a few prospective