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Highlights from G20, IMF/World Bank meetings in Washington

Sep 24, 2011, 12:16 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.

IMF MANAGING DIRECTOR CHRISTINE LAGARDE:

"There was a common recognition, a common diagnosis of what is happening at the moment and of shared sense of common purpose."

"As far as the IMF is concerned, it is ready and it will deliver on any type of resources necessary and available to all its members. It is not just a euro area focused issue at the moment. There are other countries that are affected. It is a global occurrence. It just happens that the epicenter is in the euro area."

SINGAPOREAN FINANCE MINISTER AND IMFC CHAIRMAN THARMAN SHANMUGARATNAM

"What we all felt was critical was the implementation of the euro zone July 21 agreement, which is going through a process of ratification. This was critical, in enhancing the size of the EFSF and increasing the flexibility so as to maximize its impact."

"There was a willingness to see the IMF play a key role in handling the crisis and rekindling growth over the medium term. The IMF stands ready to provide stronger support where necessary."

"There was very strong resolve that we will do what it takes to prevent an escalation of the financial crisis that we face in the weeks and months to come and that we will also do what it takes to avoid the prospect of a prolonged period of stagnation in the advanced economies and therefore a prolonged period of weakness in the global economy.

IMFC COMMUNIQUE ON GLOBAL ECONOMY, CRISIS

"The global economy has entered a dangerous phase, calling for exceptional vigilance, coordination and readiness to take bold action from members and the IMF alike. We are encouraged by the determination of our euro-area colleagues to do what is needed to resolve the euro-area crisis."

IMFC COMMUNIQUE ON EURO ZONE, BANKS:

"Euro-area countries will do whatever is necessary to resolve the euro area sovereign debt crisis and ensure the financial stability of the euro area as a whole and its member states.

"...Advanced economies will ensure that banks have strong capital positions and access to adequate funding; maintain accommodative monetary policies as long as this is consistent with price stability, bearing in mind international spillovers; revive weak housing markets and repair household balance sheets; and undertake structural reforms to boost jobs and the medium-term growth potential of their economies."

IMFC COMMUNIQUE ON EMERGING MARKETS:

"Emerging market and developing economies, which have displayed remarkable stability and growth, are also key to an effective global response....Surplus economies will continue to implement structural reforms to strengthen domestic demand, supported by continued efforts that achieve greater exchange rate flexibility."

GREEK FINANCE MINISTER EVANGELOS VENIZELOS

"Greece is determined to honor all its obligations. No Greek paper will ever go uncovered."

ECB GOVERNING COUNCIL MEMBER ATHANASIOS ORPHANIDES ON POSSIBILITY OF GREEK DEFAULT

"It is surreal that markets do expect a default. This cannot be, this cannot be! Such an event will only be forced by political forces, a political accident... This will actually be a catastrophic event and the Greek government is also realizing that. So if all the players involved want to avoid it, it is weird (that markets are expecting it)."

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