Which Russian financial crisis followed the government’s August 17, 1998 debt default?

The 1998 Russian financial crisis followed the government’s August 17, 1998, debt default.

Russia announced a devaluation of the ruble, a restructuring of domestic debt, and a temporary moratorium on some foreign debt payments on August 17. The announcement shocked investors and helped trigger a collapse in confidence across Russian financial markets.

The crisis had several underlying causes, including low oil and commodity prices, weak tax collection, large government deficits, political instability, and pressure on the ruble’s exchange-rate regime. Russian banks and businesses faced severe financial stress, and the ruble eventually lost much of its value.

The event is sometimes confused with the 1997 Asian financial crisis because the two episodes were closely connected in global markets. It also affected international hedge funds, including Long-Term Capital Management, whose difficulties contributed to a major Federal Reserve-supported rescue in September 1998.