Russian default crisis

Sovereign debt - sovereign risk - default - 1998.

The Russian debt default crisis of 1998 included three announcements by Russia on 17 August 1998:

(1) Default on all official domestic currency debt obligations falling due to the end of 1999.

(2) A 90-day moratorium on payments to foreign creditors.

(3) A de facto devaluation of the Russian Ruble by widening its trading band.

The Russian default crisis led to substantial increases in the evaluation of sovereign debt risk globally, together with volatility and loss of confidence across global financial markets.

(Source - International Contagion Effects from the Russian Crisis and the LTCM Near-Collapse - Dungrey, Fry, Conzález-Hermosillo and Martin - IMF - 2002.)

See also

• Confidence
• Contagion
• Coronavirus crisis
• De facto
• Default
• eurozone crisis
• Forbearance
• Global Financial Crisis
• Grexit
• International Monetary Fund (IMF)
• Long-Term Capital Management (LTCM)
• Moratorium
• Restructuring
• Sovereign
• Sovereign debt
• Sovereign debt crisis
• Sovereign risk
• Volatility

Other resource

• International Contagion Effects from the Russian Crisis and the LTCM Near-Collapse - Dungrey, Fry, Conzález-Hermosillo and Martin - IMF - 2002