European Commission head Jean-Claude Juncker made the announcement on Friday.

"It is with great regret that I have accepted Kristalina Georgieva's decision to resign from the commission. The fact that she has been asked to take a leading role in the World Bank is an acknowledgement and recognition of Kristalina Georgieva's many talents and her professionalism."

Juncker congratulated the former budget commissioner on her new role and announced that Günther Oettinger, presently the commissioner for Digital Economy and Society, would take over Georgieva's portfolio. Oettinger served as the state premier of Baden-Württemberg until 2010, after which he moved to the European Commission.

Georgieva back at the World Bank

Following the announcement, Georgieva tweeted her thanks to the European Union and her native Bulgaria.

In a statement published on the European Commission's website, Georgieva said it had been an honor for her to serve at the EU and in Bulgaria as the Commissioner for Humanitarian Aid. Georgieva had earlier worked in the World Bank until 2010.

"I want to thank President Juncker from the bottom of my heart for the opportunity to work in his team," Georgieva said, adding that she would return to Washington DC in the 2017. In the meantime, she would continue to work on pending issues, including the draft EU budget for 2017.

The World Bank's President, Jim Yong Kim, welcomed Georgieva's appointment through a Twitter message.

Georgieva featured in the news a couple of months ago, when she was nominated as a potential candidate for the UN Secretary General's post. She however lost out to former Portuguese Prime Minister Antonio Guterres, who will take over the position from South Korean Ban Ki-moon in January 2017.

mg/sms (AFP, Reuters)