What was the name of the 1998 stock-market collapse that followed Russia’s government debt default?

The collapse that followed Russia’s 1998 government debt default was the Russian financial crisis.

Russia declared a de facto default on domestic ruble-denominated debt on August 17, 1998, and widened the ruble’s trading band before allowing the currency to depreciate sharply. The crisis damaged Russian banks, businesses, and investors, while the country’s stock market suffered a major collapse.

Several conditions had made Russia vulnerable. Government finances were weak, tax collection was poor, commodity prices were low, and the Asian financial crisis had reduced confidence in emerging markets. Russia also relied heavily on short-term government debt, making refinancing increasingly difficult.

The crisis had consequences beyond Russia. The investment fund Long-Term Capital Management suffered severe losses after its strategies were exposed to market turmoil, prompting a private-sector rescue arranged with support from the Federal Reserve. The Russian episode is distinct from the 1997 Asian financial crisis, although the two were linked through global investor sentiment and capital flows.