The Minister of the Presidency, António Leitão Amaro, announced on Thursday the decision not to reappoint Mário Centeno at the Bank of Portugal. He did not comment on the current governor but instead highlighted the qualifications of the new leader of the Portuguese central bank.
“We appreciate the professional service [of Mário Centeno], we respect his term. We will not comment on his work,” said Leitão Amaro.
“We have chosen someone we believe is better suited for the role”, he added. “He better serves the objectives intended for the central bank.”
The Minister of the Presidency was questioned by journalists about not renewing the term of the current governor of the Bank of Portugal after his first term, which is a customary practice for the central bank leader. Leitão Amaro did not comment on Mário Centeno’s professional performance, focusing only on the appointment of Álvaro Santos Pereira, the chief economist of the OECD and former Minister of Economy under Pedro Passos Coelho.
“Álvaro Santos Pereira is a better choice because he is independent, he does not come from within a bank or a government”, added Leitão Amaro.
Tensions with the Government and IGF Audit
Throughout the term, there were several tense moments between the governor and the government, and days before choosing the new name, the executive decided to request an audit from the Inspector General of Finance (IGF) regarding the construction process of the new Bank of Portugal building in Lisbon.
The decision came after the newspaper Observador reported on Monday, July 21, that the value of the future facilities on the site of the former Feira Popular in Entrecampos would exceed the 191.99 million euros outlined in the sales contract signed in May between the Bank of Portugal and Fidelidade. The specified amount relates only to structural works, and the newspaper estimates the total cost could rise to 235 million euros.
When announcing the audit on Tuesday, July 22, “in light of the news about the new building,” the Finance Minister’s office stated it was doing so “to protect the institution [the Bank of Portugal] and in total respect for its independence.”
[Updated at 14:40]
