(Updating to add comments on Africa and protectionism, clarifying that Zoellick was former trade representative of President Bush)
POTSDAM, Germany (Thomson Financial) - Robert Kimmitt, the US' deputy Treasury Secretary, refused to rule himself out of the running for the top job at the World Bank following the resignation of Paul Wolfowitz, who will leave at the end of June.
In a press briefing after this weekend's G8 meeting of finance ministers, Kimmitt said he was 'flattered to be associated with such a prestigious institution as the World Bank'.
Kimmitt replaced his boss Hank Paulson at the meeting in Potsdam, after the latter decided to stay in Washington to prepare for next week's high-level delegation from China.
In addition to those preparations, Paulson is working the phones trying to find a replacement for Wolfowitz, who announced his decision to resign over a pay scandal involving his girlfriend on Thursday, said Kimmitt.
He said it is premature to start invoking names to replace Wolfowitz.
The future of the World Bank has become a key topic of debate at this G8 meeting.
However, it seems likely that the US will continue to be the arbiter on who will head the organisation, in a quid pro quo agreement with the Europeans, who have the ultimate say on who leads the World Bank's sister organisation, the International Monetary Fund.
Kimmitt is one of the favourites to replace Wolfowitz.
Others touted include Robert Zoellick, President George Bush's former trade supremo, and Paulson himself. There is even speculation that Tony Blair, who will step down as British Prime Minister at the end of June, may be offered the post.
Elsewhere, Kimmitt sounded fairly optimistic about the US economy, saying that it is making the 'transition to a sustainable growth path.'
In his accompanying statement, Kimmitt said he was confident the US will return toward trend over the year and that the US housing market is stabilising.
'Rising delinquencies in the subprime mortgage market have not spread more generally,' he added.
Kimmitt also said that rising protectionist sentiment in the fields of trade and investment is 'worrisome'.
'With the accumulation of large financial resources in many governmental coffers around the world, some of which are in turn being recycled into (foreign direct investment) abroad, protectionist pressures could become more acute,' he warned.
Kimmitt welcomed the G8's adoption of an action plan to help developing countries, particularly those in Africa, to ensure future debt sustainability and deepen their domestic bond markets.
In the wake of extensive debt relief granted by the G8 and multilateral lenders, he warned against the rapid buildup of fresh debt in Africa, and stressed that lenders should behave responsibly.
'Official lending activities throughout the world, particularly in Africa, threaten the hard-won gains from recent debt relief initiatives,' he said.
'It is critical that both borrowers and creditors agree on an approach to debt sustainability that prevents the reemergence of debt distress,' he added. pan.pylas@thomson.com pp/vlb COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.