ST. PETERSBURG, June 5 (RIA Novosti) - The Russian government believes the situation in the country's financial sector is stable, First Deputy Prime Minister Igor Shuvalov said on Friday.
"We are analyzing the current situation in the financial sector. We see no drama in it," Shuvalov said on the sidelines of the St. Petersburg International Economic Forum.
Finance Minister Alexei Kudrin said earlier on Friday that bad loans in the banking system would inevitably create a second wave in the financial crisis.
"A second wave of the crisis is clearly inevitable. But we will be able to resolve this by means of recapitalization of banks," Kudrin, who is also a deputy prime minister, told the Vesti 24 TV channel.
Shuvalov said, however, it was not certain that additional funds - beyond those already allocated - would be needed to support the financial sector.
"If we need them, we have them," he said.
The problem of outstanding and non-returned debts emerged last fall, when the global financial crisis reached Russia. Kudrin has said bad debts in the Russian banking system could grow to 10% of the loan portfolio, while some experts have predicted the figure could reach 20% by the end of the year.
