Christine Lagarde (2)

Christine Lagarde, the head of the International Monetary Fund (IMF), will stand trial in France over a €400 million state payout to a French businessman made when she was economy minister, a court has ruled.

Ms Lagarde had appealed the ruling of a lower court in December, but it has now been confirmed that she will stand trial in France.

She is charged with negligence over a €404m ($445m; £339m) payout made to French tycoon Bernard Tapie in 2008.

The case relates to Mr Tapie's sale of his stake in Adidas, which was handled by state-owned bank Credit Lyonnais. The businessman claimed he received too little from the sale and was defrauded by Credit Lyonnais.

Rather than allow a court ruling as would normally be the case, Ms Lagarde set up a panel to make a decision on the matter. She denies any wrongdoing, and insists she acted within the confines of the law.

The IMF executive board has since backed Ms Lagarde, who will continue to operate as the Fund's head during the trial.