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(Xinhua)
Updated: 2007-09-29 02:03

WASHINGTON - The International Monetary Fund approved on Friday former French finance minister Dominique Strauss-Kahn to head the financial institution.

"I am determined to implement without delay all the reforms the IMF needs to put financial stability at the service of people by fostering growth and employment," Strauss-Kahn said in a statement after the announcement.

The EU candidate, 58, said his election was "a joy, an honor and a responsibility."

Strauss-Kahn, also a former French presidential candidate, was virtually guaranteed to become managing director of the International Monetary Fund since he won the endorsement of the United States.

U.S. Treasury Secretary Henry Paulson has said that Strauss- Kahn "will work to make the bold reforms necessary" at the fund, which provides technical financial advice and on occasion helps rescue countries in balance-of-payments crisis.

French President Nicolas Sarkozy immediately hailed the nomination as "a great victory for French diplomacy," said the French media.

Current IMF chief Rodrigo Rato also pledged to work with Strauss-Kahn "to ensure a smooth transition."

The outgoing managing director, who said he will step down on October 31, praised that Strauss-Kahn "possesses the experience, vision and dedication to public service needed to successfully lead the IMF at this important juncture."

The 185-nation IMF is now facing touch times, including a funding shortage. It is considering selling out its gold reserves to maintain operation.

Rato, who was from Spain, announced in June that he would step down in October for personal reasons, ending his five-year term two years early.

Under a so-called gentleman's deal, the IMF is traditionally led by a European, while its sister organization, the World Bank, is headed by an American.

Both institutions have been under increasing pressure to undergo internal reforms by giving more say to other members and developing countries, including the choice of their respective leaders.