What was the name of the 1998 Russian financial crisis that included a dramatic stock-market collapse?

The 1998 Russian financial crisis was the crisis that included a dramatic collapse in Russia’s stock market.

Russia devalued the ruble and defaulted on domestic government debt on August 17, 1998. The government also imposed a temporary moratorium on some foreign debt payments by private borrowers. These measures followed years of fiscal weakness, falling tax revenues, political uncertainty, and heavy reliance on short-term government securities.

The Russian Trading System index fell sharply during the crisis, while the ruble lost much of its value. Banks were hit by defaults and currency losses, and ordinary households experienced a rapid decline in purchasing power.

The crisis affected markets beyond Russia. International investors became more cautious about emerging-market debt, and the highly leveraged American hedge fund Long-Term Capital Management suffered severe losses. A rescue arranged by major financial institutions and the Federal Reserve helped prevent an uncontrolled failure of that fund.