The world around us
19981998: a financial crisis reaches everyday life
The August default affected more than the government bond market: banks, businesses and depositors felt its consequences.
On 17 August, the authorities announced a restructuring of short-term government debt, changes to exchange-rate policy and a temporary moratorium on some payments to foreign creditors. The ruble subsequently weakened sharply, while the financial system faced a profound loss of confidence.
Delayed bank payments and difficulties accessing deposits brought the crisis into daily life. For businesses, settling payments and the stability of their banking partners became pressing concerns. Behind market indicators were actual obligations, purchases and savings.
Sources
The book celebrating 30 years of I.V.A., pages 27–28 (Russian)Image from page 28 of the anniversary book. The book does not identify the photographer or exact date.
Bank of Russia: the banking system after the 1998 crisis (Russian)