What was the 1998 market crisis called after Russia defaulted on domestic debt and devalued the ruble?

The 1998 market crisis after Russia defaulted on domestic debt and devalued the ruble was the Russian financial crisis.

On August 17, 1998, Russia announced a devaluation of the ruble, a temporary moratorium on some foreign debt payments, and a restructuring of domestic government debt. The announcement followed years of fiscal pressure and falling confidence.

Lower oil and commodity prices reduced export income, while political uncertainty and weak tax collection limited the government’s ability to stabilize its finances. Russian banks and businesses were hit severely as the ruble lost value.

The shock also affected international markets. Long-Term Capital Management, a highly leveraged U.S. hedge fund, suffered major losses partly because of the turmoil and required a private-sector rescue organized by the Federal Reserve.