Bank of Portugal Governor Alvaro Santos Pereira reversed share purchases in Lisbon-listed companies Galp and Jeronimo Martins shortly after acquiring them last year, following a review by the European Central Bank. The country’s central bank confirmed on Monday that the transactions were unwound after an earlier report by Publico newspaper brought the matter to light. Santos Pereira, who also sits on the ECB’s Governing Council, purchased the shares in December, just two months after assuming his role as governor.
The investments were disclosed in his declaration of interests to the European Central Bank in January, according to the Bank of Portugal. Galp is a prominent Lisbon-listed oil company, while Jeronimo Martins operates as a major retailer in the region. The central bank stated that Governor Santos Pereira had increased his holdings as part of “the management of his financial investment portfolio.” However, these purchases were subsequently unwound after discussions with the ECB, whose new Code of Conduct prohibits such acquisitions.
The divestment process was recently completed, the Bank of Portugal said, though it did not specify whether any profit or loss resulted from the transactions. The European Central Bank’s Code of Conduct, which came into effect in January 2023, bars senior officials from acquiring shares in individual companies after taking office. This regulation generally requires them to invest in diversified funds, a measure designed to prevent potential conflicts of interest and maintain market integrity.
