HIGHLIGHTS - Comments from G20 finmins, c.bankers meeting

Sat, Nov 7 03:27 PM

Enlarge Photo Argentina's central bank president Martin Redrado smiles as a reporter asks a question at the...

Following are comments on Saturday from Group of 20 finance ministers, central bank policymakers and officials meeting in Scotland.

Quotes from Friday are added lower down.

BRITISH FINANCE MINISTER ALISTAIR DARLING:

On climate change financing:

"I am perfectly well aware that round this table there are different views, there are arguments that we need to have ... and some tough negotiating.

"I think it really is imperative that when we reach the end of the day that we have shown that we have made some real progress.

"It really is important that we as finance ministers are engaged in this, because if there isn't an agreement on finance ... then the Copenhagen agreement is going to be much, much more difficult.

"We won't have a final word today ... but I do think we need to make progress and show that we are willing to come to the table to play our part."

On global growth and new framework

"I hope we can agree we need to maintain our support for our economies until the recovery is established. We continue to do that because, while clearly confidence levels have returned, we are still in a position where there is a lot of uncertainty, a lot of risks that still need to be negotiated.

"We also, I think, need to agree a framework that will allow us to ensure we have growth over the next decade, because with growth will come jobs and will come the increasing prosperity upon which the people we represent depend.

"It's very important we get that framework for future growth, that we don't simply accept there is no alternative but a decade of austerity, of low growth and unemployment but instead we raise our sights, raise our ambition."

RUSSIAN DELEGATION SOURCE

Told Reuters there was no timeframe in the draft communique for when to start exit strategies.

There was no mention of the dollar either "and there was not expected to be".

FRENCH OFFICIAL

On climate change financing:

"The issue is whether we talk about it or not. Britain is quite motivated on this subject but there are some quite strong objections. The emerging market countries say it should not be discussed for procedural reasons, that the G20 is not the right forum."

FRIDAY QUOTES

BRITISH FINANCE MINISTER ALISTAIR DARLING

"We need international action -- to increase trade, boost productivity and repair the financial system. Because we cannot be sure the global recovery has sufficient momentum to be sustained and durable.

"Once we're through this, we must coordinate our plans for the recovery, just as we have coordinated our response to this crisis. As we draw up plans we must accept that the biggest risk to recovery would be to exit before the recovery is real."

"In the pre-budget report, I will take further steps to secure the recovery and rebuild our fiscal strength."

ARGENTINA CENTRAL BANK GOVERNOR MARTIN REDRADO

Asked, after Brazil expressed concern on the issue earlier, if he was worried by the level of yuan, Redrado said: "No."

EU MONETARY AFFAIRS COMMISSIONER JOAQUIN ALMUNIA

On exit strategies: "We are not yet there. We need to wait for sustainable recovery but I think we are closer than previous summits."

Asked if G20 would discuss currencies: "No."

JAPAN DEPUTY FINANCE MINISTER YOSHIHIKO NODA

"It is desirable that the yuan will be flexible."

Asked about previous quotes by Japanese finance minister Hirohisa Fujii about the yen, he said: "Japan has never been in favour of a strong yen."

SWEDISH FINANCE MINISTER ANDERS BORG

"Foreign exchange policy is obviously reflecting the imbalances we have seen, so if we want to have a framework for global stability, we will also have to take into account foreign exchange rates."

"What the framework would do is to organise those discussions so that we would be clear on the key issues -- imbalances, asset prices, financial stability, fiscal policy and so forth."

"If people are going to steer out of the very, very large surpluses that we are seeing, they must have confidence that other people will also do their part."

ITALY ECONOMY MINISTER GIULIO TREMONTI

"(Not in Italy) but in other countries, there is too much liquidity in banks and too little being passed on from banks to businesses. We are back to (a situation where) the stock market is too high and very dangerous derivatives are coming back. We have to avoid having another crisis. Others have to supervise (financial markets) more."

FRENCH OFFICIAL INVOLVED IN G20 MEETING

"We will have a debate about 'too big to fail', which will be the subject of quite a busy schedule in 2010, notably around the Financial Stability Board."

"There are around six projects underway by the FSB for different types of scenarios."

IMF PAPER PREPARED FOR G20 MEETING

"The pace of recovery is uneven, particularly in advanced economies, with consumer confidence remaining subdued, the waning of temporary fiscal measures such as the cash for clunkers programme in the U.S. and similar programmes elsewhere is slowing production."

"This underscores the extent to which the improvement in demand is largely driven by policy stimulus, with a turn in the inventory cycle also playing a part."

"The timing of the exit from stimulus should depend on the state of the economy and the financial system and should err on the side of further supporting demand and financial repair."

"One of the key lessons from the experience of similar crises (such as the Great Depression and Japan in the 1990s) is that withdrawing policy stimulus too early can be very costly, particularly if the financial system remains vulnerable and prone to adverse shocks."

BRAZILIAN FINANCE MINISTRY SOURCE

"What is a concern is China's fixed exchange rate."

"The whole problem is China."

"Either all countries should have a fixed exchange rate or all should have a floating exchange rate."

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