Strauss-Kahn released from house arrest

NEW YORK: Former IMF chief DominiqueStrauss-Kahn was released from house arrest on Friday after prosecutors said the hotel maid who accuses him of attempted rape lied to a grand jury and made other false statements.

Strauss-Kahn, 62, still faces charges that he sexually assaulted the woman in New York but questions about her credibility appear to be shifting the case in his favor in a twist that could upend French politics.

The former steward of the global economy smiled as he left court with his wife, Anne Sinclair, at his side.

Until his May 14 arrest, Strauss-Kahn was a strong potential challenger to Conservative President Nicolas Sarkozy in the 2012 election. Jubilant supporters in the French Socialist party hoped he might rejoin the presidential race but some analysts saw his chances as too tarnished.

Strauss-Kahn's lawyers want the charges dropped. The judge said prosecutors will reexamine the evidence after they revealed the maid lied to a grand jury about her actions after the alleged attack and on tax and immigration documents.

"I understand that the circumstances of this case have changed substantially and I agree the risk that he would not be here has receded quite a bit," Justice Michael Obus told the court as he released Strauss-Kahn.

"There will be no rush to judgment. The people will continue to investigate and reexamine the matter as appropriate."

Strauss-Kahn, whose house arrest had included electronic monitoring and an armed guard, agreed to return to court as needed, including for a July 18 hearing.

His bail payment of $1 million and bond of $5 million were returned to him but his passport was not, meaning he can travel only within the United States.

With his resignation on May 19, Strauss-Kahn severed all his ties to the International Monetary Fund. Christine Lagarde, who has just stepped down as French finance minister, takes over the top IMF job on Tuesday. (Reuters)