What name is given to the 1998 Russian financial crisis and market collapse?

The 1998 Russian financial crisis was the crisis that brought a major collapse in Russian financial markets and a devaluation of the ruble. It became one of the most important emerging-market shocks of the late 1990s.

Russia faced falling commodity revenues, weak tax collection, large government deficits, and heavy reliance on short-term domestic debt. In August 1998, the government devalued the ruble, defaulted on some domestic debt, and declared a moratorium on certain foreign debt payments.

The turmoil affected international investors and contributed to the failure of the U.S. hedge fund Long-Term Capital Management. The Russian crisis is distinct from the Asian financial crisis, which began with Thailand’s baht devaluation in 1997. Both were linked through global investor confidence, but their immediate national triggers differed.