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Do countries learn by their mistakes? Latin America has made many but this time it got things right. Prompt government action has contained volatility so far. Economists have been studying the winning policies. But can these lessons be taught or must they be gained from experience? Brian Caplen reports.

Nothing is ever quite what it seems in Thailand, as ING Bank learnt the hard way recently. A main board director flew from Amsterdam late last year to have lunch, shake hands and return smiles with executives at Thailand's eighth-largest bank, Siam City Bank (SCIB). A memorandum of understanding (MOU) was signed under which ING would buy a 10% stake in the Thai-listed bank for Bt1.32 billion ($30 million) as part of a recapitalization.

By mid-December, bankers, central bankers, governments, the IMF, were increasingly worried that Korea was on the point of financial collapse. Its banks were weighed down by excessive short-term foreign-currency debt; its hard-currency reserves were on the point of exhaustion. Worryingly, the $57 billion multilateral government and IMF aid package hammered out in November had failed to stop the haemorrhaging of liquidity, confidence and credit.

Boothill Superhuman Resources (incorporating the Executive Exchange),

Boosted by improving economic fundamentals, the Riga Stock Exchange also enjoyed a relatively successful year in 1997 although in common with its Baltic peers it experienced a sharp reversal of fortune in the fourth quarter of the year.

Debt securitization, hi-tech IPOs, share buy-backs, complex capital-raising deals for banks ... Nordic finance was never supposed to be this interesting. Charles Olivier reports on the changing face of the Nordic capital markets

Korea stares into the abyss

Despite the negative effects of the financial turmoil in emerging markets as a result of the economic meltdown in Asia, the Tallinn Stock Exchange (TSE) still enjoyed a successful year in 1997.

Last December, Korea staved off default by a whisker. As the rest of the world dithered, the US banks came up with a rescue plan. It bought time while two heroes emerged to hammer out a deal: Citibank's debt-crisis veteran Bill Rhodes and Mark Walker, one of the toughest lawyers in the business, acting for Korea. The battle was all about bank relationships and the double-edged sword of market forces. Peter Lee reports.

The National Stock Exchange of Lithuania (NSEL) recorded a modest increase in 1997, with the leading LITIN-A index rising from 1660.7 to 1939.1. In 1998 the market is forecast to rise by 15% with a target figure of 2510 for the LITIN-A. Market capitalization is expected to increase from $2.55 billion to $3.5 billion although growth in the first quarter is predicated on a satisfactory solution to the economic turmoil in Asia which has hampered the expansion of the Lithuanian market. The major news for 1998 will be the privatization of government stakes in strategic enterprises such as telecommunications company Lietuvos telekomas, stevedoring company Klasco, shipping company Lisco, oil refinery Mazheikiu Nafta and fuel retailer Lietuvos kuras.

Korea stares into the abyss

It enjoys solid growth, a stable currency and low inflation. Can Croatia's strong recovery from war and recession continue? Charles Piggott reports