THE FORMER HEAD of the International Monetary-Fund (IMF), Dominique Strauss-Kahn, has been freed on bail after being formally indicted over charges of attempted rape against a hotel chambermaid.

At a hastily-arranged hearing in Manhattan, Judge Michael Obus ruled that Strauss-Kahn could be released on a $1m cash bail – paid using funds that had already been directly transferred over from the account of his wife, Anne Sinclair.

Sinclair was present at the hearing, as was the couple’s daughter Camille – the Daily Telegraph reporting that the pair had arrived hand in hand.

Assuming Strauss-Kahn pleads not guilty when he is due back in court on June 6, he will now face a full trial.

Among the other conditions attached to his bail are the provision of a $5m insurance bond, and an undertaking to remain at a New York address while wearing an electronic tracker tag.

Having worn an anti-suicide smock while in solitary confinement and on suicide watch at the notorious Rikers Island prison, Strauss-Kahn today presented himself in court wearing a dark blazer and a pale blue open-necked shirt.

Strauss-Kahn, a French national, had been sent to Rikers after being denied bail at a hearing on Monday. After coming under international pressure to step down from the helm of the IMF since his arrest on Saturday, Strauss-Kahn finally stepped down yesterday.

Business gossip blogger ZeroHedge has this evening tweeted that Strauss-Kahn – dubbed ‘DSK’ since the scandal broke – will receive a lifetime pension of $250,000 (€175,400) a year for the rest of his life from the IMF.

Already the race is on to succeed him, with US treasury secretary Tim Geithner appealing for a quick appointment.

Bloomberg reports that European governments, who traditionally have backed French candidates for the position, have already begun to rally around French finance minister Christine Lagarde as a potential successor.

Such a move could potentially hold benefits for Ireland, should Lagarde be removed – with the current French minister being a consistent roadblock in Ireland’s quest to lower the interest rate charged on its EU bailout loans.

The IMF has this evening published details of the appointment procedure to replace him – outlining criteria underlining that the new candidate could come from any of the IMF’s 187 member countries.

That move may be interpreted as a diplomatic offering to the emerging economies, who this week have called for the position to be awarded to a less developed economy and for Europe’s strangehold on the job to be ended.

Former IMF head Srauss-Kahn swaps luxurious life for jail cell >