When the Russian economy collapsed, Financial crisis of 1998

The 1998 economic crisis in Russia (also known as default the inability to meet the terms of a loan obligation or the failure to repay a loan in the name of one of the causes of the crisis) was one of the worst economic crises in Russia. history of Russia. The financial crisis in Russia was initially triggered by the Asian crisis that led to lower prices for raw materials (oil, gas, metals), on which Russia was 80 dependent. Against the background of declining revenues, this country has found itself in the situation of no longer paying its foreign honors, entering into cessation of payments. Before 1998, the Government issued bonds to cover its deficits, and when these bonds reached maturity, they were paid by issuing new bonds, thus the debt being rolled. The interest paid by the Government for these bonds had at one time reached 150 per annum. This whole pyramid scheme collapsed on August 13, 1998, when the stock market and the exchange rate collapsed. The economy began to recover in 199920