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00:00One of China's greatest challenges in realizing its belt & Road initiative will be paying for it. The capital scope for targeted projects ranges from 4 to 8 trillion dollars. But its how it manages its money across countries with high risk and poor credit profiles that provides one of the biggest unknowns . Defaults can always happen. Infrastructure is a risky business . In the early stages and that's why it's so important to have the right kind of finance in the right place at the right scale at the right time and that's what multilateral development banks tried to do. The policy is very clear. The bank is inclusive and we do not intentionally tried to grab as some people into this bank because it's ultimately the decision making of the sovereign governments. My conversations at the highest levels often echo sentiments around where we need the private banks to participate . We need the foreign banks to participate. We're not going to fund all these projects but more importantly we don't want to see white elephants. We want these projects to be viable. Of the 70 or so countries China Alice's partners the sovereign debt of twenty seven of them are rated as junk or below investment grade. Another 14 of them countries like Afghanistan Iran and Syria are not rated at all. A couple of countries Sri Lanka is a good example. The Chinese financed a big port there but it's actually not very useful. It's not economic. So now the Chinese have taken it over and I think we'll see that and some smaller more vulnerable countries infrastructure sounds nice . But if it doesn't generate a lot of business then it's not good infrastructure. If an infrastructure is built in Southeast Asia or Pakistan or Kazakhstan or linking up with Africa first and foremost that infrastructure should be shaped by the country in which it is and that I think is extremely important. So in China we say you aim high. You achieve something it'll be lower . You aim middle or you may achieve in the you know the Lower East. So the Chinese people are very much ambitious but I want to see China would be ambitious for the rest of the world .

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The Trillions Behind China's Belt & Road Initiative

It's the most ambitious and expensive infrastructure program in modern history. China is pumping trillions into its Belt and Road initiative in the form of loans and investment from projects across 78 countries. But critics fear the money behind China's ambitions could lead to major debt problems for the rest of the world. Bloomberg's Stephen Engle reports on "Bloomberg Markets: Asia." (Source: Bloomberg)