Which Russian government action on August 17, 1998 intensified the Russian financial crisis and stock-market crash?

Russia's debt default and ruble devaluation on August 17, 1998 intensified the Russian financial crisis and stock-market crash.

The government announced that it would restructure or default on domestic ruble-denominated debt and widen the ruble's trading band. Soon afterward, the currency was devalued and later allowed to float. The measures damaged confidence in Russian banks, companies, and government finances.

The crisis followed years of weak tax collection, low commodity prices, political instability, and heavy reliance on short-term government debt. Russia had also been affected by the Asian financial crisis and falling oil prices, which reduced export revenues.

The event is sometimes described simply as a ruble crisis, but the sovereign-debt component was equally important. The financial turmoil also contributed to the collapse of Long-Term Capital Management in the United States, whose rescue in September 1998 involved major Wall Street firms.