G7 leaders comments after meeting
WASHINGTON (Reuters) - Group of Seven financial officials said on Friday that they would work together to do everything necessary to free up credit and money markets, saying the current situation called for urgent and exceptional action.
The group was meeting ahead of an October 11-13 gathering of finance ministers and central bankers from around the globe at the annual meetings of the International Monetary Fund and World Bank.
Following are highlights of comments by the G7 leaders.
EUROGROUP CHAIRMAN JEAN-CLAUDE JUNCKER on Eurogroup meeting
"We welcome the initiative of President Sarkozy to convene
a meeting of heads of government of Eurogroup on Sunday night."
ECB PRESIDENT JEAN-CLAUDE TRICHET on the rate cuts:
"The global decision of central banks to decrease rates because we had inflation expectations under control and the most recent events had confirmed the risks to price stability had decreased."
ECB PRESIDENT JEAN-CLAUDE TRICHET on actions taken so far:
"We have taken a lot of actions in the past week. We are continuing to take action in the past week and we have taken action just a few days ago...a lot of action has been also taken. We have to say it is an ongoing part of decisions."
FRENCH ECONOMY MINISTER CHRISTINE LAGARDE on G7 statement:
"This G7 meeting took place in exceptional circumstances and you have in front of you a statement that is itself exceptional. You're used to having long, dense, three-page statements that resemble each other from one G7 to the next. Here you have a one-page document with five main points"
"What are the messages of this statement. First of all that we are all aware of the seriousness of the situation."
"We wanted to send a very clear message to the markets, to tell them to stay calm and reject irrational behavior"
"The second message is that we are ready to act"
ECB GOVERNING COUNCIL MEMBER CHRISTIAN NOYER on rate cuts:
"We do what seems to us necessary at a particular time, exactly as our mandate states. We never prejudge the future. We have always been extremely open...We are always ready to do whatever is necessary at any time."
U.S. TREASURY SECRETARY HENRY PAULSON in answer to a question:
"The immediate focus is on liquidity and it is on supporting and understanding the systemic risks and supporting our major financial institutions while we are working as quickly as possible to unveil the capital part of the plan."
U.S. TREASURY SECRETARY HENRY PAULSON in prepared statement:
"I briefed my colleagues on the work we are pursuing to implement swiftly and thoughtfully the new financial rescue package. We are developing strategies to use the authority to purchase and insure mortgage assets and to purchase equity in financial institutions, as deemed necessary to promote financial market stability. As we develop plans to purchase equity, as in the approach we are taking to broad mortgage asset purchases, we are working to develop a standardized program that is open to a broad array of financial institutions. Such a program would be designed to encourage the raising of new private capital to complement public capital. Consistent with the legislation, any equity the government purchases through a broadly available equity program would be on a non-voting basis, except with respect to the market standard terms to protect our rights as investors."
ECB PRESIDENT JEAN-CLAUDE TRICHET on G7 statement:
"We have a very, very concise plan of action."
"I think it is some kind of concision and precision that is up to the challenges of the present time."
EUROGROUP CHAIRMAN JEAN-CLAUDE JUNCKER on fiscal discipline:
"We would like to stick to the basic rules of the pact, in no way does it mean a loosening of the rules."
ECB PRESIDENT JEAN-CLAUDE TRICHET on accounting standards:
"What is very important is to be sure there was convergence of the regulations and rules as regards accounting on both sides of the Atlantic that is being done on the European side in a very expeditious and accelerated manner."
