Christine Lagarde, International Monetary Fund head, was yesterday found guilty of negligence in public office during her time as French finance minister by a special Paris court.

The IMF board met in Washington last night to consider the case, in which the tribunal decided not to impose any sentence or to place the verdict on Ms Lagarde’s judicial record. Michel Sapin, finance minister, said the French government continued to have “complete confidence ” in Ms Lagarde in her role at the IMF.

The court, dedicated to judging ministers, said Ms Lagarde failed to prevent a €403m payout that Paris made to flamboyant entrepreneur Bernard Tapie in a long-running dispute with the state. The payment was later ruled to have been fraudulent. The tribunal said Ms Lagarde should have appealed the payout, awarded by an arbitration panel in 2008.