The acting managing director of the International Monetary Fund yesterday withdrew from the race to head the fund full-time, clearing the way for Germany's Mr Horst Kohler to sweep to an unopposed victory.

Mr Stanley Fischer, who has run the fund since France's Mr Michel Camdessus stepped down in February, said in a statement he was looking forward to working with European nominee, Mr Kohler, the head of European Bank for Reconstruction and Development. "I had an excellent meeting this morning with Mr Kohler, during which we discussed the challenges the fund faces," said Mr Fischer, the fund's second-in-command under Camdessus.