Russian default of 1998
The state's refusal in August 1998 to pay on its short-term rouble bonds, followed by the abandonment of the currency corridor.
How to read the number
The construction was unstable by design: short, expensive debt was serviced with new issues while the exchange rate was held with reserves. A fall in export commodity prices removed both supports at once.
When the metric lies
Defaulting on domestic debt in one's own currency is rare: technically the state could have printed the roubles, so the choice was between not paying and debasing.
Also known as: gko default