HIGHLIGHTS-G20 finance leaders discuss global economy, Brexit

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CHENGDU, China, July 24 (Reuters) - Finance leaders of the Group of G20 economies gathered in the southwestern Chinese city of Chengdu for a two-day meeting to discuss issues affecting the global economy ranging from growing dissatisfaction with globalisation and industrial overcapacity to risks from Brexit.

Following are highlights of comments made at the G20 meeting and related events:

BRITISH FINANCE MINISTER PHILIP HAMMOND

"What will start to reduce uncertainty is when we are able to set out more clearly the kind of arrangement we envisage going forward with the European Union. If our European Union partners respond to such a vision positively - obviously it will be subject to negotiation - so that there is a sense perhaps later this year that we are all on the same page in terms of where we expect to be going, I think that will send a reassuring signal to the business community and to markets.

"It makes sense that we go into that (formal EU) negotiation well prepared with our own objectives clearly shaped...We have to do that before the start of the process because when we start that process we need to hit the ground running because we have only got two years to complete the negotiation.

"Both of them (German leader Angela Merkel and French President Francois Hollande) have completely understood what we are trying to do and have accepted that we should be given the space and the time to prepare ourselves properly for this negotiating process."

U.S. TREASURY SECRETARY JACK LEW

"Our view on Turkey is that we support the democratically elected government in Turkey and as Turkey responds to the attempted coup, we very much urge that actions be taken consistent with the rule of law. I think that there was a broad view in the room that those principles are important and that economic stability be maintained in Turkey."

"We had an agreement out of Shanghai to refrain from competitive devaluation and to communicate very clearly with each other. In the last few weeks we've had occasions to test that as well...countries have honored the commitments they've made at Shanghai."

IMF MANAGING DIRECTOR CHRISTINE LAGARDE

"Our discussions were taking place in a spirit of cooperation and willingness to tackle difficult issues. There was a consensus around the table that more needs to be done to share the benefits of growth and economic openness broadly within and among countries.

"In this context, I noted that the G20 members are taking actions to foster confidence and support growth. I welcome their determination to use all policy tools - monetary, fiscal and structural - individually and collectively to achieve strong, sustainable, balanced and inclusive growth. Structural reforms are particularly critical, as recent IMF work shows that well-designed structural reforms can lift both short- and long-term growth and make it more inclusive. Further trade liberalisation is also crucial to bolster productivity and global growth, while taking steps to ensure the gains from trade are shared widely." (Compiled by Jacqueline Wong)