Christine Lagarde is first woman IMF chief

Washington: French finance minister Christine Lagarde ended her campaign for the top slot at the International Monetary Fund on a winning note with her election as managing director of the international lender's body being confirmed on Tuesday. Her election maintains the tradition of a European heading the body. 

She commences her five-year term at a time of growing concern over a possible Greek debt default which has the potential to spark off an international crisis.

"The executive board, after considering all relevant information on the candidacies, proceeded to select Ms. Lagarde by consensus," the IMF said in a statement.

Lagarde, 55, succeeds Dominique Strauss-Kahn, who resigned from the IMF in May after facing charges of sexual assault.

French president Nicolas Sarkozy called the news "a victory for France," while Lagarde said she was "deeply honoured."

Minutes after her appointment, Lagarde issued a statement asking Greece to press ahead with unpopular austerity measures that the IMF and EU have said are a prerequisite for further aid.