Latest news with #MarioCenteno
Reuters
5 days ago
- Business
- Reuters
Portugal nominates OECD's Santos Pereira to succeed Centeno as central bank chief
LISBON, July 24 (Reuters) - The Portuguese government nominated on Thursday Alvaro Santos Pereira, the chief economist at the Organisation for Economic Cooperation and Development, as the next central bank governor to succeed Mario Centeno, whose term formally ended on July 19. The decision was announced by Cabinet Minister Antonio Leitao Amaro after a weekly cabinet meeting. Centeno has been the target of frequent criticism from the political right, now in power, for moving from his role as finance minister in a previous Socialist administration to the central bank in 2020, a move detractors said undermined the institution's independence. Centeno, who was Eurogroup president in 2018-2020, has been a vocal so-called dove favouring looser monetary policy at the European Central Bank. Central bank governors are nominated by the cabinet for a five-year term and can be reappointed once. Centeno has previously said he is ready to continue leading the institution. The nominee must submit to questioning by a parliamentary committee - which has no power to block the nomination - before the government can officially appoint him. It is not uncommon for heads of regulatory bodies in Portugal to remain in office months after their terms expire.
Reuters
5 days ago
- Business
- Reuters
Portugal picks OECD's Santos Pereira to replace Centeno as central bank chief
LISBON, July 24 (Reuters) - The Portuguese government nominated on Thursday Alvaro Santos Pereira, the chief economist at the Organisation for Economic Cooperation and Development, as the next central bank governor to succeed Mario Centeno, whose term formally ended on July 19. The decision to nominate Santos Pereira, who served as economy minister in a centre-right government in 2011-2013 at the height of Portugal's debt crisis and austerity dictated by an international bailout, was announced by Cabinet Minister Antonio Leitao Amaro after a weekly cabinet meeting. The nominee must submit to questioning by a parliamentary committee - which has no power to block the nomination - before the government can officially appoint him. It is not uncommon for heads of regulatory bodies in Portugal to remain in office months after their terms expire. Centeno, who was open to serving a second term, has been the target of frequent criticism from the political right, now in power, for moving from his role as finance minister in a previous Socialist administration to the central bank in 2020, a move detractors said undermined the institution's independence. Centeno, who was Eurogroup president in 2018-2020, has been a vocal so-called dove favouring looser monetary policy at the European Central Bank. As the OECD's chief economist, Santos Pereira, 53, has been tasked with designing ways for the group of 38 developed countries and their partners to promote long-term economic growth. Leitao Amaro said that Santos Pereira "has a profound understanding of the Portuguese and international economy and the financial system ... and is a highly regarded and independent voice in his field internationally."
Bloomberg
5 days ago
- Business
- Bloomberg
Portugal Names Pereira as Central Bank Chief, Replacing Centeno
The Portuguese government nominated Alvaro Santos Pereira to head the central bank, replacing one of the euro area's most dovish interest rate-setters after just one term. Pereira, 53, is currently the OECD's chief economist. He will succeed Mario Centeno, Minister of the Presidency Antonio Leitao Amaro said at a press conference Thursday in Lisbon following a cabinet meeting.
Reuters
7 days ago
- Business
- Reuters
Portugal's government to audit central bank contract over reported risks
LISBON, July 23 (Reuters) - Portugal's Finance Ministry has requested an audit of a contract signed in May by the central bank, whose governor's term ended on Saturday, for the construction of its new headquarters that has raised concerns about financial and legal risks. The announcement by the ministry late on Tuesday follows a report by news site Observador that the 192-million-euro ($225-million) promissory contract had been signed despite due diligence warnings of "high-risk contingencies," including significant potential cost overruns and licensing problems. The central bank declined to comment on the audit on Wednesday. The Observador said it told them it used national and international best practices for rigorous control of the contract's legality and financial terms. Following the report, the junior ruling coalition partner, the conservative CDS-PP, late on Tuesday summoned Bank of Portugal Governor Mario Centeno to explain the situation before a parliamentary committee that will take place in September after the summer recess. It also asked the central bank to send the contract and due diligence studies to the committee. The centre-right government is expected at a cabinet meeting on Thursday to decide whether to reappoint or replace Centeno, a Socialist who was appointed in 2020 by a previous centre-left administration. Centeno was criticised by the political right for moving from his role as finance minister to the central bank in 2020. His detractors said the move undermined the institution's independence. The Finance Ministry said it was requesting the audit, to be carried out by its General Financial Inspectorate, "in defence of the institution (central bank) and in full respect for its independence". ($1 = 0.8524 euros)
Reuters
18-07-2025
- Business
- Reuters
Portugal to decide next week on future of central bank chief
LISBON, July 18 (Reuters) - The Portuguese government will decide next week whether to replace or reappoint Bank of Portugal Governor Mario Centeno, whose five-year term ends on Saturday, Finance Minister Joaquim Miranda Sarmento said on Friday. Centeno has been the target of frequent criticism from the political right, now in power, for moving from his role as finance minister in a previous Socialist administration to the central bank in 2020, a move detractors said undermined the institution's independence. Miranda Sarmento has previously said the cabinet would consider whether to reappoint Centeno, who has been a vocal so-called "dove" favouring looser monetary policy at the European Central Bank, or replace him towards the end of his term. Friday's cabinet meeting ended without a decision, however. The minister gave no further comment on the likelihood of Centeno being replaced after months of speculation that centre-right Prime Minister Luis Montenegro was looking for a new central bank chief, despite Centeno's strong European credentials at the ECB and as Eurogroup president in 2018-2020. The central bank declined to comment. Centeno has previously said he is ready to continue leading the institution. Central bank governors are proposed by the finance minister and nominated by the cabinet for a five-year term and can be reappointed once. The nominee must submit to questioning by a parliamentary committee - which has no power to block the nomination - before the government can officially appoint him or her. Portugal's parliament began its summer recess until September on Thursday, although committees can still hold hearings through next Friday. It is not uncommon for heads of regulatory bodies in Portugal to remain in office months after their terms expire. Filipe Garcia, head of Informacao de Mercados Financeiros consultants, said the fact that the government had not denied speculation that Montenegro sought to replace Centeno suggested that his days at the helm of the central bank were numbered. Several names of potential successors have circulated in Portuguese media recently, including the Vice President of the Federal Reserve Bank of New York, Joao Cabral dos Santos, and former CEO of Portugal's Novo Banco, Antonio Ramalho.
