Highlights: EU finance ministers and officials

Following are highlights of comments from EU finance ministers and officials after talks in Brussels on Tuesday:

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE ON A NEW GREEK SUPPORT PACKAGE:

"That a private sector participation will come is certain. The key is that the debt sustainability of Greece must be further improved.

"We are determined to do everything that is necessary to keep the euro zone stable. We have said we are ready to examine if ... an extension of the tools of the EFSF is necessary... for example, an extension of the repayment periods.

"That can all help to improve debt sustainability and protect the euro. The ECB has signaled again that, from their point of view, a credit event or selective default should be avoided if possible. We have to see how we deal with this."

AUSTRIAN FINANCE MINISTER MARIA FEKTER ON GREEK SUPPORT PACKAGE AND THE EUROPEAN FINANCIAL STABILITY FACILITY (EFSF):

"This second reform package (Greece) must be ready by September. We have discussed how this package should look. Private participation requires a bit more flexibility from the EFSF. We should not aim to have private participation that doesn't bring any relief for the Greeks and at the same time brings the countries providing assistance into difficulty through a default."

ON AVOIDING GREEK DEBT DEFAULT:

"Efforts are still being made... to avoid a default, even a selective default. There are creative models from the insurance sector, whereby it would be thinkable that the insurance sector could assist the financial markets.

"At the moment it's normal that financial market investments are secured by financial market instruments -- such as swaps, credit default swaps.

"The insurance sector has offered that it could possibly insure...bonds...in the traditional way in the form of premiums or classical insurance products."

ON POSSIBLE USE OF EURO AREA BONDS FOR DEALING WITH DEBT CRISIS:

"I am against eurobonds. It is not sensible ... fiscally or economically."

"One should not mix money with an AAA rating with money which does not have AAA, because the result is not AAA."

"We are trying very hard to avoid a default. What happens after a default? We have to protect the banks. All things are possible on the capital markets."

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN ON PROGRESS IN DEALING WITH GREEK DEBT:

"We have made significant progress yesterday and I am certain that shortly we will be able to present the concrete proposals so that the ministers can take the concrete decisions on this basis.

"So there is no reason to underestimate yesterday's (Eurogroup) statement, because it gives a very clear sense of direction which will lead to the destination shortly."

ON CREDIT RATING AGENCIES, PRIVATE SECTOR INVOLVEMENT AND THE EUROPEAN CENTRAL BANK:

"I do not want to jump the gun here, because the work is going on and we are in discussions with the private sector, including the Institute of International Finance, so that we can find ways and means to meet the goals defined in the statement, in order to reduce the cost of debt servicing and agree on the means to increase the sustainability of the public debt of Greece.

"That is the main goal and now we are looking for the concrete means for that and working very effectively."

LUXEMBOURG'S FINANCE MINISTER LUC FRIEDEN ON A POSSIBLE GREEK DEFAULT:

"There will be no country in default within the euro zone."

(Reporting by Julien Toyer, Leigh Thomas, John O'Donnell and Daniel Flynn)