HIGHLIGHTS-G7 meets in Canada's Far North

U.S. TREASURY SECRETARY TIMOTHY GEITHNER

ON FINANCIAL REFORM

"We all share a deep commitment to try to move forward and
reach agreement on a strong, comprehensive set of financial
reforms on the timetable we all committed to last September."

"That means agreement on the details for example of a new
set of capital requirements for large financial institutions by
the end of this year. The United States is very committed to
making sure we are working in putting in place a strong,
multilateral level playing field across these global
institutions and across global markets."

"And we're going to design this framework with great care
and we're going to make sure as we put it in place, we're going
to do so in ways that don't undermine prospects for recovery."

"Now we all have somewhat different systems, and these
common standards we put in place are going to have to be
complimented by slightly different approaches at the national
level. But I think what we saw today was not a divergence in
approach but a strong commitment together to try and make sure
we're putting in place the strong reforms that would prevent
these kind of crises from happening again."

ON EURO ZONE DEBT WORRIES

"European authorities gave us a very comprehensive review
of the program now in place to address the challenges faced by
the Greek economy. They made clear to us they will manage this
with great care."

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

ABOUT GREECE

"Our partners outside Europe have the firm impression that
the Europeans can solve this problem and can cope with it."

ON REGULATION AND BANK-FINANCING OF CRISIS-COSTS:

"It was generally agreed that the banks will have to pay
for crisis costs"

"The goal must be to find regulations for the whole
financial sector without possibilities to escape."

"The main goal is to find a common solution. That is the
most important. If we succeed in this on a worldwide level -
good. If not we must find coordinated steps in the EU."

ON NEW ROLE OF G7

"Open speech, not working out communiques, that is the
meaning of the new G7."

CANADIAN FINANCE MINISTER JIM FLAHERTY

ON BANK REFORM

"With respect to financial reform, obviously that was a
major issue of discussions. We discussed capital adequacy.
We've agreed and committed to working closely together to
ensure, among other things, that to the extent (a) financial
crisis is caused by financial institutions that the financial
institutions bear the costs of their contributions to those
crises."

"We agreed on the timetable which was established before,
asking the IMF to report back to us in April."

ON THE RECOVERY

"The global economic situation has improved and is
improving. We do not have a firmly established recovery yet,
but there are signs. We need to continue to deliver the
stimulus to which we are committed and begin to look ahead to
exit strategies and to move to a more sustainable fiscal
track."

HAITI

"We had discussions concerning Haiti ... We are committed
in the G7 to the forgiveness of debt vis-a-vis Haiti ... We
discussed the long-term reconstruction assistance that will be
needed."

G7

"We had a very good fireside chat on that subject. Our
meeting has reaffirmed the proven role of the G7 as a first
responder and as a sounding board for common challenges ... We
look forward to our next meeting on the margins of the usual
spring meeting of the IMF."

JEAN-CLAUDE JUNCKER, CHAIR OF THE EUROGROUP OF EURO ZONE
FINANCE MINISTERS

ON CURRENCIES:

"We have agreed that there is no reason to change what we
said recently. We stick to what we said in Istanbul."

ON EURO ZONE FISCAL PROBLEMS:

"We, the representatives of the euro area, have made it
clear that the situation in Greece is serious, and that the
problem will be resolved."
(Reporting by Reuters team at the G7 meeting; editing by Chizu
Nomiyama and Jeffrey Hodgson)