IMF Europe chief resigns

WASHINGTON – The International Monetary Fund's crucial head of its European Department, which oversees its giant bailouts of Greece, Portugal and Ireland, has resigned, the Fund has announced.

Antonio Borges, who led the unit only since November 2010, submitted his resignation "for personal reasons" and "will relinquish his responsibilities immediately", the IMF said in a statement on Wednesday.

British-Iranian Reza Moghadam, a nearly 20-year veteran of the IMF now directing its Strategy, Policy, and Review Department, will replace Borges in the crucial job running the Fund's largest emergency lending programs, effective November 17.

"Antonio Borges has led the European Department during an extremely difficult period for the region's eurozone members. His vast public and private sector, and academic experience, combined with his ability to build strong relationships with member country authorities, have been of great value in responding to the crisis," IMF managing director Christine Lagarde said in a statement.

"I look forward to Reza Moghadam applying to our work in Europe the same strategic vision, drive, and thoughtfulness that he has demonstrated in his previous position."

Moghadam will be replaced, also effective on November 17, by Siddharth Tiwari, currently IMF secretary.

Economist Borges, 63, was named into the position a year ago by then-IMF chief Dominique Strauss-Kahn, coming from a position leading the Hedge Fund Standards Board in London. Earlier, from 2000-2008, he was managing director of Goldman Sachs International in London.

Borges made an embarrassing blunder that impacted markets on October 5 when he told reporters in Brussels after top-level meetings on the eurozone crisis that the Fund could potentially intervene in secondary bond markets to support stressed member states.