Russian financial crisis of 1998

E6408

economic crisis financial crisis sovereign default event

The Russian financial crisis of 1998 was a severe economic collapse marked by a sharp devaluation of the ruble, default on domestic debt, and banking sector turmoil that undermined confidence in Russia’s post-Soviet market reforms.

Aliases (3)

Statements (50)

Predicate	Object
instanceOf	economic crisis → financial crisis → sovereign default event →
affectedSector	Russian financial markets → banking sector in Russia → real economy in Russia →
alsoKnownAs	1998 Russian financial crisis → Ruble crisis of 1998 → Russian default of 1998 →
country	Russia →
endDate	1999 →
followedBy	Russian economic recovery in the early 2000s →
governmentAction	announcement of ruble devaluation on 17 August 1998 → default on short-term ruble-denominated government securities (GKOs and OFZs) → imposition of a 90-day moratorium on some foreign debt payments → temporary capital controls and restrictions on foreign exchange operations →
historicalContext	post-Soviet economic transition in Russia →
impact	collapse of investor confidence in Russia → increase in non-performing loans in Russian banks → pressure on emerging markets globally → sharp fall in Russian stock market →
involvedCurrency	Russian ruble →
keyEvent	banking sector crisis in Russia → collapse of the Russian Treasury bill (GKO) market → default on domestic government debt → devaluation of the Russian ruble in August 1998 → moratorium on some foreign debt payments →
location	Russian Federation →
mainCause	Asian financial crisis of 1997 contagion → chronic fiscal deficits → declining commodity prices → political instability in Russia in the 1990s → unsustainable government debt → weak tax collection →
notableConsequence	near-collapse of the hedge fund Long-Term Capital Management →
precededBy	Asian financial crisis of 1997 →
relatedTo	Russian government debt restructuring of 1999 →
result	collapse of many Russian banks → contraction of Russian GDP → erosion of confidence in post-Soviet market reforms → loss of savings for Russian households → political fallout for the Russian government → rise in poverty in Russia → sharp devaluation of the Russian ruble → spike in inflation in Russia → strengthening of state role in the Russian economy →
startDate	1998-08-17 →
timePeriod	late 1990s →
triggeredBy	fall in world oil prices in the late 1990s → loss of investor confidence in Russian government debt →

Referenced by (4)

Subject (surface form when different)	Predicate
Russian financial crisis of 1998 ("1998 Russian financial crisis") → Russian financial crisis of 1998 ("Russian default of 1998") → Russian financial crisis of 1998 ("Ruble crisis of 1998") →	alsoKnownAs
Asian financial crisis of 1997–1998 →	followedBy