The head of the IMF, Dominique Strauss-Kahn, is appearing in court in New York to face charges of sexual assault.
Mr Strauss-Kahn, who had been seen as a contender in France's 2012 presidential election, denies allegations that he tried to rape a hotel maid on Saturday.
Prosecutors are arguing against granting him bail.
Meanwhile, another allegation against Mr Strauss-Kahn has emerged. A French writer says she may file a complaint for an alleged sexual assault in 2002.
Tristane Banon, 31, says Mr Strauss-Kahn tried to rape her when she went to interview him for a book she was writing.
"We're planning to make a complaint," Ms Banon's lawyer told AFP news agency. Mr Strauss-Kahn's lawyers have so far not responded to the allegation.
The International Monetary Fund head is facing charges relating to an alleged assault at the Times Square Sofitel hotel in New York on Saturday.
Mr Strauss-Kahn, 62, underwent medical examinations on Sunday. Police were looking for scratches or any other evidence of his alleged assault on the chambermaid.
He was later charged with a "criminal sexual act, unlawful imprisonment and attempted rape". Police say the 32-year-old maid who made the allegations has formally identified him in a line-up.
Mr Strauss-Kahn's lawyer Benjamin Brafman said his client intended to "vigorously defend these charges".
Until he was arrested, Mr Strauss-Kahn was considered a favourite to become the Socialist candidate for the French presidency next year. Opinion polls gave him a good chance of defeating President Nicolas Sarkozy.
Socialist party president Martine Aubry described his arrest as a "thunderbolt" but called for Mr Strauss-Kahn to be presumed innocent.
Mr Strauss-Kahn's wife, French TV personality Anne Sinclair, has also protested his innocence.
The European Union says the scandal should not affect bail-outs for eurozone countries.
The IMF has played a central role in organising rescue packages for the troubled economies of Portugal and Greece, and Mr Strauss-Kahn had been due to attend an EU finance ministers' meeting in Brussels to discuss the bail-outs.
The BBC's Chris Morris in Brussels says he has gained the trust of countries in Europe which are giving financial assistance, and those which are receiving it.
Source: bbc.co.uk
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