What was the name of the 1998 Russian financial crisis that included a sovereign debt default and ruble devaluation?

The 1998 Russian financial crisis included Russia’s sovereign debt default and the devaluation of the ruble.

Russia had issued short-term government debt while facing weak tax collection, falling commodity revenues, and political uncertainty. On 17 August 1998, the government announced a de facto default on domestic debt, widened the ruble’s trading band, and imposed a temporary moratorium on some foreign debt payments. The ruble subsequently lost much of its value.

The crisis damaged Russian banks and investors and contributed to severe economic disruption. It also exposed the risks of relying on short-term borrowing to finance government obligations. International investors had already been unsettled by the Asian financial crisis and by falling confidence in emerging markets.

A major related event followed in the United States: the hedge fund Long-Term Capital Management nearly failed in September 1998. Its rescue was organized by private-sector banks, with the Federal Reserve facilitating discussions, rather than by a direct government bailout.