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Highlights: Financial leaders meeting in Washington

Sep 25, 2011, 9:12 a.m.

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

DEUTSCHE BANK CHIEF EXECUTIVE JOSEPH ACKERMANN, WHO CHAIRS THE IIF, ON PARTICIPATION IN GREEK DEBT SWAP:

"We are confident that private investors and creditors will participate strongly in the debt exchange offer and considerable progress has been made in building support."

ON POSSIBILTY OF RENEGOTIATING TERMS:

"It is not feasible to reopen the agreement and, given the benefits to Greece, we should focus now on its timely and resolute implementation,"

EUROPEAN CENTRAL BANK EXECUTIVE BOARD MEMBER LORENZO BINI SMAGHI:

ON THE POSSIBILITY OF A EUROPEAN TALF/TARP

"There could be the equivalent of the TALF...or the equivalent of the TARP. I think both scenarios can be followed.... I think that these two options could solve the problem."

ON PRIVATE SECTOR INVOLVEMENT

"It created reserve moral hazard because it created the illusion in some countries, particularly in Greece, that there is an easy way out."

"We have had three spikes in spreads in the last 12 months .. The last one was on July 21 when heads of government agreed on haircuts for the private sector...It was, against the advice of the ECB, a total mistake in the way in which governments and parliaments have addressed the issue of dealing with the markets."

'There is no way out of this crisis unless they agree on the concept...We need to ensure that the contagion and the fear that markets have of investing in Europe is dealt with.

ON PRIVATISATIONS

'European sovereigns should make it clear that in order to honor their signatures they are willing to sell their assets, to privatize, because the signature of the state is the most important element.

"Secondly we need to ensure there is enough backstop to ensure the financial sector can resist any shock."

ON ECB

"We have to ensure that the liquidity in the markets is there and this requires actions both by the states, because the fiscal part is a state responsibility, first implementing the EFSF and second making sure the EFSF is used in the most efficient way as a backstop for the financial sector, and by central banks, which have the obligation to ensure liquidity in the market. There we have policies which ensure unlimited refinancing by European banks .. and as Trichet says the amount of collateral is huge, it is some 3 trillion euros.

"We need to act quickly in the coming days to convince the market that investing in the euro is a very good investment.

INTERNATIONAL MONETARY FUND'S EUROPEAN DEPARTMENT CHIEF ANTONIO BORGES

'It is very important that we see a combination of the ECB and the EFSF. Anyone who thinks that the EFSF will be a miraculous solution to the problem I think is making a very big mistake.

'The ECB is the only agent which can really scare the markets.'

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