The leadership of International Monetary Fund is now in disarray with the arrest and detention of managing director Dominique Strauss-Kahn by the New York City police.

The IMF's concerns focusing on the complex financial woes across Europe are compounded with by a leadership crisis as Strauss-Kahn is kept without bail at New York City's Rikers Island prison and deputy managing director John Lipsky has announced to leave the financial institution to leave in August.

A related AP report said the IMF executive board met late Monday to discuss Mr Strauss-Kahn's situation, but made no public decision on his fate.

"The board was briefed regarding criminal charges that have been brought against the managing director during a private visit to New York City," it said in a terse statement.

"The IMF and its executive board will continue to monitor developments."

The Fund proceeded with the approval and signing of a 78-billion-euro ($111 billion) EU-IMF bailout for Portugal, and approved 1.58 billion euros in new assistance to debt-laden Ireland.

Mr Strauss-Kahn was seized by police Saturday at New York's JFK airport as he was about to take a flight to Europe to discuss the Greek crisis with German chancellor Angela Merkel. A hotel chambermaid at the Sofitel complained that he tried to rape her and forced her to have oral sex.

Lawyers for the 62-year-old French politician told a court early Monday he was innocent, and he was jailed after a judge denied him bail.