Annual Report of Euram Bank Vienna 2017

Events of particular importance after the balance sheet date
of 31 December 2017
In the insolvency proceedings regarding the assets of Maple Bank GmbH, another
preliminary distribution of liquid assets (preliminary distribution II) was resolved
upon on 9 March 2018. Within the scope of distribution II, another disbursement
of dividends in the amount of 6.5% to the creditors was provided for.
2. Anticipated trends and risks
Outlook for 2018
In the past few years, employment and consumption have impacted considerably
on economic growth, while the low interest rates in many countries have
triggered a boom in real estate financing. The general growth perspectives are
consolidating, the sentiment among entrepreneurs is improving, labor is getting
increasingly scarce, but profitability remains high. Tax cuts and tax reliefs, especially
in the USA, are likely to stimulate global economic growth as well. International
trade is expected to increase, with protectionist tendencies prevailing. The
inflation rate is likely to remain low. Many branches of industry are still suffering
under the burden of excess production capacities all over the world. However,
since (as mentioned above) labor is starting to get scarce in the meantime, wages
increasing at a somewhat faster pace might also cause somewhat more rapid
price increases. The US Federal Reserve Bank (Fed) started to cut back its balance
sheet in October 2017. The European Central Bank (ECB) and others are expected
to reduce their bond purchases as of 2018. Accordingly, at the end of 2018, all
major central banks will have reduced their balance sheets progressively overall.
In the emerging markets, the phase of monetary easing is gradually coming to an
end. Therefore, global monetary policy is going to be much less expansive in the
near future.
Euram Bank AG
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