Portugal Proposes That Costa Continues as Central Bank Governor

The Portuguese government proposed that Carlos Costa continues to be the governor of the Bank of Portugal after his current term ends in June.

Costa will now attend a parliamentary hearing and parliament will then send a report before cabinet takes a decision on the appointment, Parliamentary Affairs Minister Luis Marques Guedes said today at a press conference in Lisbon.

“His performance leading the Bank of Portugal is globally positive,” Marques Guedes said.

Costa, who is also a member of the European Central Bank’s governing council, last year oversaw the rescue of Banco Espirito Santo SA. The central bank in August moved that lender’s deposits and most of its assets to Novo Banco SA, a new entity that it’s now planning to sell.

Binding offers for Novo Banco are due by June 30. The Bank of Portugal manages the Resolution Fund that owns Novo Banco after the 4.9 billion-euro ($5.3 billion) bailout, and the rescue will be repaid by proceeds from the sale.