What was the name of the 1998 global market crisis triggered after Russia defaulted on its debt?

The 1998 global market crisis triggered after Russia defaulted on its debt is known as the Russian financial crisis. Russia devalued the ruble and declared a moratorium on some foreign debt payments on August 17, 1998.

The crisis followed years of fiscal strain, weak tax collection, falling commodity prices, and political uncertainty. Russia had issued short-term government debt, much of it carrying high interest rates, but struggled to refinance its obligations.

The shock spread through international markets and damaged confidence in emerging-market debt. The collapse of Long-Term Capital Management, a highly leveraged U.S. hedge fund, soon added to concerns about systemic risk.

The Russian crisis is distinct from the 1997 Asian financial crisis, although investors often discuss them together because capital flight and global risk aversion linked the episodes. Russia later benefited from higher oil prices and improved fiscal conditions.