What date marked Russia’s government default during the 1998 financial crisis?

Russia’s government default during the 1998 financial crisis was announced on August 17, 1998.

The Russian government widened the trading band for the ruble, suspended some domestic debt payments, and announced a 90-day moratorium on certain foreign debt repayments. The measures followed intense pressure on Russia’s currency and government finances.

Falling oil prices, weak tax collection, political instability, and the costs of defending the ruble all contributed to the crisis. Investors rapidly withdrew funds, and the ruble later lost much of its value.

The Russian default also damaged international investors and hedge funds. Long-Term Capital Management, a highly leveraged U.S. hedge fund, suffered severe losses soon afterward and required a private-sector rescue organized with help from the Federal Reserve.