What was the name of the 1998 Russian financial crisis involving a government debt default?

The 1998 Russian financial crisis was the crisis involving Russia’s government debt default. On August 17, 1998, Russia devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic government debt.

Russia faced falling commodity revenues, weak tax collection, political uncertainty, and heavy reliance on short-term government securities. Investors became increasingly unwilling to roll over that debt. The Asian financial crisis and declining oil prices added pressure to an already fragile financial position.

The ruble’s collapse damaged banks and companies with foreign-currency obligations. International markets also felt the shock, especially after the failure of the highly leveraged U.S. hedge fund Long-Term Capital Management prompted a coordinated private-sector rescue in September 1998.

The Russian episode is sometimes labeled simply a currency crisis, but it combined sovereign default, devaluation, banking distress, and capital flight. It was a distinct event from the 1994 Mexican peso crisis and the 1997 Asian financial crisis, although those crises influenced investor behavior.