António Ramalho, the current president of Infraestruturas de Portugal which runs the country’s rail and road systems, has been named as the new president of Novo Banco.
The Bank of Portugal appointment of António Manuel Palma Ramalho to the Novo Banco board is to replace Eduardo Stock da Cunha whose dire presidency of the bank has overseen continued losses, little reduction in staff levels, few branch closures and a sale process that will see the bank valued at the very lowest end of expectations.
The Bank of Portugal's announcement highlights Ramalho’s experience in the financial sector where he was president of Unicre and a BCP director between 2010 and 2012.
Ramalho took over the presidency of the merged State railway company 'Comboios de Portugal' and the national road company 'Estradas de Portugal' which was named 'Infraestruturas de Portugal.'
This merger required €150,000 to be spent on a new logo and €170,000 to be spent on a staff party to celebrate the merger.
The deal was put together by the then Secretary of State for Public Works, Sérgio Monteiro, who currently is coordinating the sale of Novo Banco on €25,000 per month. It is unlikely that Ramalho was interviewed for the job at Novo Banco as these sorts of government employees are directly appointed on what many refer to as 'the old boys' network.'
António Ramalho takes over at Novo Banco on August 1st and can while away his days by reviewing the four bids that have been received for the loss-making bank.
The Bank of Portugal waves good-bye to Stock da Cunha who took over at Novo Banco in September 2014, after the capable Vítor Bento was sacked for disagreeing on 'strategy' with the Bank of Portugal’s governor, António Costa.
Bento said the bank would best be sold in the medium term to maximise the return but Costa needed a sale within two years in a flawed plan to repay the taxpayer and the Resolution Fund which had funded the €4.9 billion creation of Novo Banco from the smouldering wreckage of BES.
One of Stock da Cunha’s less intelligent sales tactics was to inform the media that he did not think Novo Banco would fetch much, certainly not the €4.9 billion required to break even.
Stock da Cunha returns to London and his desk at the Lloyds Banking Group with the secret of which companies bid for Novo Banco, and how much, still under wraps.
