HIGHLIGHTS-Coordinated central bank action to calm markets

The following are highlights of comments from policy makers on Thursday.

FEDERAL RESERVE, BANK OF CANADA, BANK OF ENGLAND, EUROPEAN CENTRAL BANK, SWISS NATIONAL BANK, BANK OF JAPAN, COMMON LINE IN ALL STATEMENTS ANNOUNCING CO-ORDINATED ACTION:
"These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets. These central banks continue to work together closely and will take appropriate steps to address the ongoing pressures."

- EU MONETARY AFFAIRS COMMISSIONER JOAQUIN ALMUNIA, TO
CONFERENCE IN SPAIN:
"We still have no idea how long this turbulence will last and when normality will return to the markets."

"The uncertainty has not let up and the events of this week have not helped."

He said 2008 had been a very difficult year from an economic point of view, "the most difficult we can remember in our lifetime...one which has been hit by a series of shocks."

- JAPANESE FINANCE MINISTER BUNMEI IBUKI, TO REPORTERS:
"Central banks globally took action to protect the dollar's value as an international currency ..."It has nothing to do with (currency intervention). The step is aimed at meeting short-term dollar demand. It's completely different from money aimed for use in currency intervention ...- JAPANESE ECONOMICS MINISTER KAORU YOSANO: TO REPORTERS:
Yosano welcomed the global central bank move to provide liquidity, saying it was "timely and appropriate".The minister also said he was confident that the financial turmoil would eventually subside.

- BANK OF JAPAN DEPUTY GOVERNOR KIYOHIKO NISHIMURA, TO SECURITIES BROKERS:
"Even considering the effect of the failure of major (U.S.) investment banks I don't expect it to seriously affect the stability of Japan's overall financial system."

- GERMANY'S BDB PRIVATE BANKS' ASSOCIATION, IN STATEMENT:
"Unlike in many countries in the euro zone, there is no statistical evidence of a credit crunch in Germany," the BdB said in a statement. "In the United States, the risk of a credit crunch is clearly apparent."

- JANNECKE EBBESEN, HEAD OF MARKET OPERATIONS AND ANALYSIS
AT NORGES BANK, TO REUTERS:
"Norges Bank's supply of Norwegian crowns to the market is close to normal, but still the market is illiquid with bigger spreads and smaller volumes."

"What is still difficult is the U.S. dollar, but that has been helped by the coordinated actions by the group of bigger central banks announced this morning," she said.Comments before the central bank coordinated action:

- AUSTRALIAN PRIME MINISTER, KEVIN RUDD, AT A NEWS CONFERENCE:
"The government is in active daily contact with each of the regulators and those regulators are in active daily collaborative action with their counterparts around the world.

"The advice of the regulators is still that Australia's financial institutions are in sound shape, that the order of their balance sheets is strong. Therefore, as the governor himself said today, there is a world of difference between the circumstances facing Australia's financial institutions and those which face financial institutions abroad. We are not immune to those difficulties, but we are in a strong position to see Australia through.

"The government is confident that the regulatory arrangements we have in place provide certainty for all Australians who are concerned about the state of their financial institutions.

"About the need for global action on transparency and other areas, which is coordinated, we are doing our part in Australia. We need to see much more of that internationally."

- HARUHIKO KURODA, THE PRESIDENT OF THE ADB, TO BANKERS, REGULATORS AND ACADEMICS IN MANILA:
"Even if subprime-related losses have to date been lower than elsewhere, this is no guarantee recent events will not affect major Asian financial institutions.

"We need to establish best practices for handling liquidity shortages or ensuring effective financial sector safety nets."