Which 1998 crisis followed Russia’s sovereign default and the collapse of the ruble?

The 1998 Russian financial crisis followed Russia’s sovereign default and the collapse of the ruble.

Russia declared a partial default on domestic ruble-denominated debt on August 17, 1998, and widened the ruble’s trading band before allowing the currency to fall sharply. The government also imposed a 90-day moratorium on some payments by commercial banks to foreign creditors. Falling oil and other commodity prices had weakened government revenues, while political uncertainty and large fiscal deficits damaged confidence.

The crisis spread through international markets. Investors became more cautious about emerging-market debt and currencies, and the highly leveraged U.S. hedge fund Long-Term Capital Management suffered enormous losses. The Federal Reserve helped coordinate a private-sector rescue of the fund in September 1998 because an uncontrolled failure was feared to threaten financial stability. The Russian episode was related to, but distinct from, the Asian financial crisis that began in 1997.