The Executive Board of the International Monetary Fund (IMF) on Friday voiced support for Managing Director Christine Lagarde as she was under investigation of negligence.

"As we have said before, it would not be appropriate to comment on a case that has been and is currently before the French judiciary. However, the Executive Board has been briefed on recent developments related to this matter, and continues to express its confidence in the Managing Director's ability to effectively carry out her duties," the IMF's decision-making body said in a statement.

On Wednesday, Lagarde was placed under formal investigation for "negligence" in her handling of a scandal involving tycoon Bernard Tapie in 2008.

The 58-year-old former lawyer stressed that the court decision was "unfounded" and that she would file an appeal.

In May 2013, the IMF director was named as "assisted witness" in the fraud investigation, which means there is a possibility for her to be charged later.

The investigation focuses on the decision made by Lagarde, who in 2008 served as France's finance minister under Nicolas Sarkozy's administration, to order a panel of judges to settle by arbitration a legal dispute between Tapie and state-owned bank Credit Lyonnais over the mishandled sale of sports company Adidas in 1993. Endi

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