Russia announced its debt default and ruble devaluation on August 17, 1998, marking the decisive phase of the Russian financial crisis.
The government widened the ruble’s trading band, effectively devalued the currency, and declared a 90-day moratorium on some foreign debt payments. Russia was under intense pressure from falling oil prices, weak tax collection, large fiscal deficits, and the financial aftershocks of the Asian crisis.
The announcement caused severe losses for domestic investors and intensified a banking crisis. International investors also suffered, and the shock contributed to the collapse of Long-Term Capital Management, a highly leveraged U.S. hedge fund, after its positions became difficult to unwind.
The date is sometimes described simply as Russia’s 1998 default. Technically, the measures included both domestic debt restructuring and currency-policy changes, so “default” alone does not describe every part of the announcement.