Which Russian institution defaulted on domestic debt at the center of the 1998 financial crisis?

The Russian government defaulted on domestic debt at the center of the 1998 Russian financial crisis.

On August 17, 1998, Russia announced a devaluation of the ruble, a temporary moratorium on some foreign debt payments, and a restructuring of domestic government debt. The announcement followed falling oil prices, weak tax collection, political instability, and pressure on the ruble.

The ruble subsequently lost much of its value, and Russian banks and businesses faced severe stress. The crisis also contributed to the collapse of the highly leveraged U.S. hedge fund Long-Term Capital Management, whose positions were exposed to market dislocation.

A common mistake is to describe the event as a default by the Central Bank of Russia. The central bank managed monetary and currency policy, but the sovereign debt measures were announced by the Russian government.