Alexander Demarco likely to be chosen as new Central Bank head
Economy Minister Silvio Schembri denies rumours he is interested in the post
Central Bank deputy governor Alexander Demarco has been earmarked to take over from Edward Scicluna when the latter retires in December, Times of Malta is informed.
Demarco had temporarily taken over the reins of the Central Bank when Scicluna suspended himself, following public and government pressure over criminal charges related to the Vitals hospitals deal in July last year.
Scicluna was reinstated as Central Bank governor in July but his term ends in the new year.
Three senior government sources confirmed to Times of Malta that Demarco would be offered the job. “He is a career bureaucrat – a safe, non-controversial choice. If nothing else changes by December, he is our man,” a senior government figure said.
Demarco is a veteran of the bank, now entering his fourth decade with the Central Bank. He was first made deputy governor in January 2014, initially put in charge of running the bank’s financial stability unit. Three years later, he was named the bank’s deputy governor for monetary policy, leading its banking and financial markets divisions, among others.
The news follows rumours that Economy Minister Silvio Schembri could take over from Scicluna, a claim the minister has fiercely denied.
“There is no discussion for me to become governor of the Central Bank or take on any other role. And even if there were, I am not interested,” Schembri posted on his social media page. “My responsibility is clear – that of Minister for the Economy – and that will remain as long as I have your trust.”
He is a career bureaucrat – a safe, non-controversial choice. If nothing else changes by December, he is our man- Senior government source
Before being made deputy governor, Demarco found himself at the centre of a controversy, when then-communications minister Austin Gatt accused him of leaking confidential information to then-opposition leader Joseph Muscat.
Demarco, Gatt alleged, was acting as a consultant to the opposition, having reviewed a report for the Labour Party. A series of internal probes cleared Demarco of any wrongdoing, finding Gatt’s accusations to be unfounded.
Scicluna, now 78, had served as a member of the European Parliament between 2009 and 2013 before prime minister Joseph Muscat made his old European Parliament colleague finance minister in 2013.
He remained in the role until the end of 2020, when Prime Minister Robert Abela appointed him Central Bank governor for a five-year term that began on January 1, 2021.