The executive board of the International Monetary Fund (IMF) says Christine Lagarde must continue with her “outstanding leadership”, despite being convicted by a French court on Monday.

Lagarde was convicted of negligence in the misuse of public funds, but after the IMF board reviewed her situation, it expressed its “full confidence” in her work.

“The Executive Board met today to consider recent developments in the legal proceedings in France involving Managing Director Christine Lagarde,” the board said in a mailed statement.

“The Executive Board took all relevant factors into account in its discussions, including the Managing Director’s outstanding leadership of the Fund and the wide respect and trust for her leadership globally.

“In this context, the Executive Board reaffirms its full confidence in the Managing Director’s ability to continue to effectively carry out her duties.”

It added: “Under the Fund’s governance framework, the Managing Director is appointed by the Executive Board and performs her duties under the Board’s direction.

“In the exercise of its oversight responsibilities, the Executive Board has met regularly, since the Managing Director’s appointment in 2011, to consider whether developments in the legal proceedings in France relating to the Managing Director have affected her ability to lead the Fund.

“The Executive Board looks forward to continuing to work with the Managing Director to address the difficult challenges facing the global economy.”

The International Monetary Fund (IMF) says it will be meeting shortly to consider the fate of its managing director, Christine Lagarde, who was convicted in France on Monday.

In a statement, Gerry Rice, director of communications at the International Monetary Fund (IMF), said the board of the fund had met to consider the case against Lagarde and would do so again with the most recent conviction.

“The executive board has met on previous occasions to consider developments related to the legal proceedings in France,” Rice said. “It is expected that the board will meet again shortly to consider the most recent developments.”

Despite the eight-year old allegation of negligence in the misuse of public funds, Lagarde was reelected head of the fund in February 2016.

Lagarde, who is in her sixth year as the managing director of the organisation, hasd been expected to resign, following the allegations of misdeeds in public finance.

Experts say the global financial institution may not ask her to step down.

Lagarde is one of the most powerful women on earth.

French judges on Monday found International Monetary Fund managing director Christine Lagarde guilty of negligence for failing to challenge a €400 million state arbitration payout to a business tycoon in 2008 when she was French finance minister.

Despite the ruling the judges did not give any sentence in the case on her decision to allow the rare out-of-court arbitration payment. She has denied the negligence charges.

Her lawyer said immediately after the ruling that his team would look into appealing the decision.

The ruling risks triggering a new leadership crisis at the International Monetary Fund after Ms Lagarde’s predecessor Dominique Strauss-Kahn resigned in 2011 over a sex assault scandal.