PARIS (MNI) – The Portuguese government today named Carlos Costa,
a long-time veteran of domestic and international banking, as the next
governor of the Bank of Portugal, a spokeswoman at the central bank
confirmed.

Costa will succeed Vitor Constancio at the helm of Portugal’s
central bank on June 1, the same date that Constancio will become the
new vice president of the European Central Bank in Frankfurt.

As head of the Bank of Portugal, Costa will hold a seat on the
ECB’s Governing Council and will participate in the monthly monetary
policy meetings. There will thus be two Portuguese Governing Council
members.

Costa currently serves as a vice president of the European
Investment Bank in Luxembourg. The Portuguese press credits him with
strengthening ties between his country and the EIB. In 2008, for
example, the number of projects in Portugal financed by the EIB rose
62%, while EIB loans to the country rose 124% to E2.3 billion, according
to Portugal’s financial newspaper Diario Economico.

Costa, who graduated with a degree in economics from the University
of Porto, served as administrator of the state-owned General Deposit
Bank (Caixa Geral de Depositos) and has held numerous posts in private
banking as well – with emphases both on domestic and international
issues.

–Paris newsroom, +331=42=71-55-40; bwolfson@marketnews.com

[TOPICS: M$$EC$,M$X$$$,MT$$$$,MGX$$$]