What term describes the 1998 Russian market and currency collapse that followed the government’s debt default?

The 1998 Russian market and currency collapse following the government’s debt default is called the Russian financial crisis.

Russia devalued the ruble and defaulted on domestic ruble-denominated debt on August 17, 1998. The Moscow stock market had already fallen heavily as oil prices weakened, tax collection failed, and investors doubted the government’s ability to finance deficits. Banks faced insolvency when the ruble collapsed.

The crisis spread internationally through losses at banks and hedge funds, most famously Long-Term Capital Management in the United States. The IMF and other governments organized assistance, but confidence returned only gradually. Rising oil prices and fiscal reforms later improved Russia’s finances, yet the 1998 episode remains a major example of sovereign default triggering an equity and currency crash.