Former IMF chief and 64 bankers begin trial for spending millions on company credit cards to fund luxury lifestyles while working at Spanish bank

FORMER chief of the International Monetary Fund Rodrigo Rato has begun his trial over an alleged credit card racket at Spain’s Bankia bank.

Rato and 64 other bankers allegedly used ‘unofficial’ company credit cards to make luxury purchases.

Prosecutors claim around €12 million was splashed on hotels, designer clothes, entertainment and travel, all of which were unrelated to their duties.

A lot of the spending occurred while Spain was going through one if the largest financial crises in its history.

Authorities say the purchases were not declared to the Hacienda and that the system began at Caja Madrid bank before being continued by Rato when Bankia was created in 2011.

Bankia had to be bailed out in 2012 at a huge expense to the public.

Rato has denied any wrongdoing.