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Highlights: G20, IMF/World Bank meetings in Washington

Sep 23, 2011, 7:30 p.m.

WASHINGTON (Reuters) - The following are highlights of comments by finance ministers and central bankers in Washington this week for meetings of the Group of 20 and the semiannual meetings of the International Monetary Fund and World Bank.

CHINESE DEPUTY MINISTER OF FINANCE ZHU GUANGYAO ON EFSF, ESM:

"Before the next (G-20 Finance Ministers) meeting, Europe will make a clear decision on increasing the capital of the EFSF."

"We hope both the ESM (European Stability Mechanism) and the EFSF (European Financial Stability Fund) will work together to support the stability of Europe."

FRENCH FINANCE MINISTER FRANCOIS BAROIN ON FINANCIAL TRANSACTION TAX PROPOSAL:

"Tonight nobody can say that such a tax on financial transactions is not technically feasible. We are making progress on the technical coherence of this project".

JAPANESE FINANCE MINISTER JUN AZUMI ON GLOBAL ECONOMY:

"The global economy may falter unless Europe makes certain progress in rescuing Greece by the Paris G20 meeting next month. I hope Europe comes up with some solution to the crisis.

ON THE CURRENT CRISIS AND ONE TRIGGERED BY LEHMAN BROTHERS IN 2008:

"The Lehman crisis was about rescuing a company. Now it's involves a country's sovereign debt so in a sense, the situation is more severe."

"There are views, such as from the United States, that the EFSF's functions should be bigger. ... If as a result of appropriate assessment of European banks' assets, it becomes clear that more funds are needed, Japan hopes to cooperate as much as possible if necessary."

BANK OF CANADA GOVERNOR CARNEY ON EURO WILL

"This is a fragile situation in Europe but it's fixable. ... It's not a question of ability for the euro zone. It is question of political will and ... taking these decisions in a timely manner that is ahead of the markets."

CANADIAN FINANCE MINISTER FLAHERTY ON EFSF FLEXIBILITY

"They (the Europeans) agreed in the communique last night to be flexible with respect to the facility, so that's progress."

JAPANESE DEPUTY VICE FINANCE MINISTER MASATSUGU ASAKAWA

ON THE YEN:

"I can't make any comment on the appropriate level for the yen. Logically speaking, as long as deflation goes on, there will be continuous pressure for the yen to rise."

ON WHETHER JAPAN CAN ADOPT MEASURES SIMILAR TO THOSE TAKEN BY SWITZERLAND TO CAP THE FRANC'S RISE: "Switzerland decided to abandon its independence on monetary policy. In Japan, that is simply not an option to take."

AUSTRALIAN TREASURER WAYNE SWAN:

ON POSSIBLE GLOBAL DOUBLE-DIP RECESSION

"The IMF has outlined its view on global growth, and it says that risk is on the downside. But they are still talking about global growth on the order of 4 percent. I think it is far too early to be making those sorts of dire predictions (of a double dip)."

ON ATMOSPHERE AT TALKS IN WASHINGTON

"There's a pretty somber mood in the meetings here."

ON WHETHER CHINA WOULD ALLOW YUAN APPRECIATION

"China has been a participant in all these discussions, and I believe they come to the table in good faith."

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