International Monetary Fund Managing Director Rodrigo de Rato will quit the Fund in October without completing his five-year term which ends in May 2009.
"I have taken this decision for personal reasons. My family circumstances and responsibilities, particularly with regard to the education of my children, are the reasons for relinquishing earlier than expected my responsibilities at the Fund," Rato said in a communication to the IMF executive board on Thursday.
Rato, who has been spearheading the crucial voice and quota reforms at the IMF to realign the voting pattern in line with the emerging economic prowess of countries like China and India, expressed his intention to quit the Fund after the annual meetings of the World Bank-IMF in October.
According to some media reports, Rato, a former Spanish minister of economy and vice-president of the economic affairs, may be taking a private job after leaving the Fund.
Rato took over the top job at Fund with support from Latin American countries, after Horst Koehler resigned in March 2004 to run for presidency of Germany.
He won the job against another European rival Jean Lemierre, the head of the European Bank for Reconstruction and Development.
Before Koehler, the IMF was managed by Michel Camdessus, who retired in 2000 after running the Fund since 1987. IMF has traditionally been managed by a European and with Rato's decision to quit in October, the race for the prestigious job will begin again.