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With inflation under control and a new government Ukraine may at last live up to expectations - but not until it pays people their wages. By Gavin Gray.

Private-sector Brazilian and Argentine institutions top our table of the leading banks in Latin America ranked by shareholders' equity. Commentary by Rebecca Dobson.

The US tops Euromoney's country risk ranking for first time since September 1994, achieving maximum points in every section, notably for political risk and economic performance. The country has been climbing steadily in the last few surveys but it seems its growth has peaked, since economists participating in the survey forecast a drop in GNP growth from 3.4% this year to 2.45% in 1998. Other countries marching up the top 10 include the Netherlands at number three, Norway at five and Austria at nine, all of which rank high up in our table of economic projections. The Netherlands' GNP growth is set to rise from 2.91% to 3.06% over the next 12 months and Austria looks forward to a 5.16% rise in economic performance with increased GNP growth of 2.27% in 1998. Among emerging markets, Latin America performs particularly well. Chile scrapes into the top 30 at 29, up three places since last March. The peso has remained steady all year and economic recovery is well underway. Last year's fears of overheating have receded. But the highest climbers in the top 100 are Argentina - up 7 to 52, El Salvador - up 13 to 65, Venezuela - up 9 to 71, Guatemala - up 20 to 73, Honduras - up 14 to 90, and Panama - up 14 to 60. Since January, Panama has received credit ratings from Moody's and Standard & Poor's and has successfully issued its first 144A Eurobond for $500m. Economists foresee all six countries performing significantly better over the next 12 months.

The 1997 Euromoney poll reveals some sharp differences of opinion between borrowers and bankers themselves about which are the best capital market intermediaries. But JP Morgan stays the overall favourite. By Rebecca Dobson.

Taiwan's Shanghai Commercial & Savings Bank is an unknown name in global finance. But this private-sector bank is very special. It gets a top ααα in Euromoney's new emerging market bank (Emba) ratings, covering 450 lesser-known banks. Pakistan's state-owned United Bank came bottom. The ratings go where others have feared to tread. Brian Caplen explains their use as a vital tool for counterparty risk.

Currency crises in emerging markets are the result of too much foreign capital, not too little. An early warning barometer is a country's "fundamental balance" - current account plus foreign direct investment. But even then, if small economies can't absorb the inflow they should form regional currency blocs. Roll on the Singapore yen, the Polish euro and the Mexican dollar, writes Michael Howell.

Foreign banks looking to diversify in international markets have pinpointed Latin America as the new growth area. But whereas in the past they largely confined themselves to investment banking and elite customers they are now seeking to build broader retail operations, either through outright purchases of local banks or buying large stakes in them. Michelle Celarier reports on a race that has sent the prices of even the shakier institutions to surprising levels.

Much more private-sector activity from Brazil is expected on international capital markets as the privatization programme progresses. Unsecured bond issuance is only part of this expansion. And as hyperinflation becomes a distant memory, the domestic capital market is also growing rapidly. Michael Marray reports.