May 10 (Bloomberg) -- World Bank President Paul Wolfowitz won more time to respond to conflict-of-interest charges as the agency's directors sought to deflect criticism they are hounding him out of office.

Wolfowitz now has two more days, until tomorrow evening, to ready his defense, the executive board of the Washington-based agency said in a statement late yesterday. Earlier, bank directors gave him three days, over the protests of his lawyer, who asked for a week. The board invited Wolfowitz to appear in person on May 15.

Directors are concerned that rushing a decision on Wolfowitz's future would weaken their case and antagonize the Bush administration, said two bank officials who spoke on condition of anonymity. The pause allows more time to negotiate an exit for the former deputy defense secretary and avoid a confrontation between the U.S. and his European detractors.

``Had they denied his request for more time there was a risk it would have undermined the legitimacy of their findings and turned Wolfowitz into the victim,'' Colin Bradford, a senior fellow at the Washington-based Brookings Institution, said in an interview yesterday. ``The extra time does not increase the chances that Wolfowitz will survive.''

European officials are calling for a swift end to the month-long standoff, saying every day that passes does more harm to the reputation of an institution that preaches good government in developing nations.

``It has got to be brought to an end and it has got to be brought to a satisfactory conclusion which maintains the credibility and the reputation of the bank,'' U.K. International Development Secretary Hilary Benn told lawmakers in London yesterday.

Reid Letter

Support for Wolfowitz, 63, is also eroding among Democratic leaders of the U.S. Senate. Four Senators led by Majority Leader Harry Reid of Nevada urged President George W. Bush to push for a quick resolution of the impasse.

``We are very concerned that the window of opportunity is closing fast for the United States to show leadership to resolve this crisis,'' said their letter, which was also signed by Richard Durbin of Illinois, Charles Schumer of New York and Patty Murray of Washington.

Bush is the only world leader to have publicly said Wolfowitz, whom he nominated in 2005, should keep his job. ``We still support him fully,'' White House spokesman Tony Snow told reporters today. A day earlier, Snow referred questions about Wolfowitz to Treasury Secretary Henry Paulson, who controls the U.S. vote at the World Bank.

Weekend Work

The seven-member panel that investigated Wolfowitz will have the weekend to consider Wolfowitz's response before the full 24-person board convenes early next week. The board, which answers to the bank's 185 member governments, has the authority to fire or reprimand him.

``The report being prepared by the ad hoc group will permit an effective and orderly resolution of the matter, following fair process and careful deliberation,'' yesterday's statement said. The board ``will then consider all the information available and reach their decisions.''

The reprieve allows more time for governments to forge an agreement over Wolfowitz's fate that would stave off a confrontation on the bank's board, said Devesh Kapur, co-author of the official history of the World Bank.

``They need a deal that will get rid of Wolfowitz while allowing him and the U.S. to save some face,'' Kapur said.

Wolfowitz's attorney, Robert Bennett, this week called the original three-day deadline ``terribly unfair,'' arguing it didn't give him enough time to sift through 600 pages of documents he received from the panel.

Brookly McLaughlin, Paulson's spokeswoman, signaled sympathy for that view, saying Wolfowitz should be given ``sufficient time'' to respond to allegations against him.

13th Floor

The reprieve was a topic of discussion at a five-hour meeting of directors yesterday on the 13th floor of the World Bank's glass-sheathed headquarters two blocks from the White House.

``Lets face it, the board has already made up their mind,'' said George Ayittey, an economist at American University in Washington and a former World Bank consultant. ``They want to appear to be fair.''

The panel of directors determined that Wolfowitz violated ethics rules when he arranged the deal under which Shaha Riza, 52, was transferred to the State Department in 2005 to avoid a potential conflict of interest.

Riza was given a 36 percent pay raise, to $180,000, with guarantees of future increases of 8 percent a year, while remaining on the bank payroll.

Kellems Criticized

The report also accuses Kevin Kellems, Wolfowitz's chief communications aide, of issuing misleading statements about the handling of the pay raise, a bank official said. Kellems, a former Bush administration official and a lightning rod for complaints Wolfowitz used his office to further U.S. foreign policy goals, resigned this week.

Wolfowitz initially apologized for his involvement in Riza's promotion and later took a more aggressive stance, vowing he wouldn't resign in the face of a ``bogus charge'' and saying he had been the victim of a ``smear campaign.''

Wolfowitz argued that he was only acting on the orders of the bank's ethics committee when he arranged the promotion for Riza, who was working in the bank as a communications officer at the time. He also blamed unclear rules governing conflicts of interest.

To contact the reporters on this story: Christopher Swann in Washington at cswann1@bloomberg.net; William McQuillen in Washington at bmcquillen@@bloomberg.net.

Last Updated: May 10, 2007 00:01 EDT