The International Monetary Fund (IMF) has said it continues to have "confidence" in its managing director Christine Lagarde, BBC News reported.

An IMF spokesman said the fund's board backed Lagarde despite a French inquiry into alleged abuses of power. The probe relates to her time as French finance minister and her involvement in the payment of compensation to businessman Bernard Tapie.

Lagarde, who took over as IMF chief in 2011, denies any wrongdoing. Her Paris apartment was searched by police investigators last week.

"The executive board has been briefed on this matter, including recently, and continues to express its confidence in the managing director's ability to effectively carry out her duties," said IMF spokesman Gerry Rice at a press conference on Thursday, March 28.