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00:00The last time we spoke to you was pre pandemic. How has the pandemic impacted the bank . Kobe 19 crisis recovery facility has provided six point six billion dollars approved by it. Already there are three billion dollars being prepared. So the lending program has increased. So that's the very important feature we did not expect. On the other hand because of the difficulty of preparing projects on the ground and remote work can do something but cannot do as much as you would like to see. We need boots on the ground . Then we see probably the slow down in the mainstream business of physical infrastructure development. How much distress are you seeing in the loans that you've made. We work with very competent project sponsors and the partners. What worries me . What worries our bank is the deterioration in the economic situations of some of our members. And they are downgraded . Some of them maybe more to be. That means all that will be translated into increased impairment charges to our net income . Is it logical then to assume increased defaults as well or renegotiations of terms. We don't do that as the preferred creditor status . Enjoyed the preferred credit status so far. And as you see the creditor the debtors I normally would honor their debt service to the multilateral institutions like the World Bank like IDB like all of us because we are the net capital providers to this country. At a time when they do need the financial resources. Recently we have got a confirmation of the rating companies. They are very pleased with the way we manage the bank. What do you expect the total value of loans and projects to be by the end of the year. Are we now are at the total accumulate lending over the last four years and a half is over 20 billion dollars already . RTS. I always highlight the quality quantity quality quantity is the priority . Quantity is important because if you don't have the critical mass you will have no impact. We have 13 billion dollars for Kobe 19 recovery face crisis. But you see I do not think we need to increase the recovery cryo crisis recovery facility anymore. I want to shift quickly back to mainstream business . But but this one important point I like to tell you I would take social infrastructure which means health sector as one of the areas in which we can invest. You've been very clear you will not sign off on any funding for coal related projects. I just want to push you on this. The Bank Information Center which is an NGO in Washington has said that for every dollar spent on renewables by the AIB almost twice that has been spent on fossil fuels. Do you need to go further. Will you stop for example funding fossil fuel projects across the board. We would not to finance coal firing power plants as I said nor any projects which are functional related to coal. We focus of limited financial resources on renewables. This is what we need to do . But there are lots of things beyond our control . This in my view should be dealt with by the powers by the financial institutions in the private sector by the international community to handle together. The development bank like ours has limited resources to develop renewables and we have no right to tell any of our climate members. You should not do this. You shouldn't do that. This is not possible. The European Investment Bank EIB. They have ruled out funding for fossil fuel linked projects. You could follow their lead. You should allow the Asian countries certain period for them to phase out entirely fossil fuel. European countries that developed countries they are way ahead of the Asian developing countries in terms of finance technology and capacity. This is something which is exactly deficient in many of the developing countries in Asia . So what do we need to do is to push forward the transition accelerate the process as much as possible. There was a report in Project Syndicate by an academic from the University of Lisbon and a development agency in Denmark and they said that the EIB is lack of transparency threatens to make a bad situation worse when it comes to the climate crisis when it comes to civic society. What is your answer to that . I don't think people should complain about a lack of transparency of our institution. I hold dialogues with the shareholders stakeholders and and the community. So I think that if they look at it the way we publicize the old information they should feel comfortable. You've often talked about the fact that the bank is apolitical . Is it becoming more difficult to be apolitical in the current environment. When you use state interference I would say you should not define this as something completely negative because people broadly referred to any suggestions ideas from the government as interference. I don't look at it that way. We should remain humble. We should be willing to listen to the ideas suggestions of the shareholders. Given your previous role as vice finance minister here in China on China's economy the economy is clearly recovering . How sustainable is it. Do you think. And what are the key risks. I think to control the local government's debt . Because you see the local governments some of them have accumulated debt over the years for their development and development areas. Coastal development areas I think would have little difficulty if any to deal with that. But it may be hinterland provinces for areas that they need more support. So Chinese government is paying a lot of attention to the debt sustainability in some of these areas. And I think if China takes care of this no problem. Whenever we talk to you you talk about the need. When when we discuss the tensions between the US and China you talk about the need for dialogue. Do you think there is a chance after the election that a window however small might open up for some kind of partial reset of this relationship in spite of some rhetorics you know trumpeted by some of this people. I think inwardly they believe the only solution is dialogue mutual understanding. As a Chinese and as one who has been dealing with an American colleagues for so many years I would say I'm confident. I believe eventually some people who got them excited would come down and sit down to talk . So there is a potential potential possibly for some kind of reset in the relationship. I'm even more positive than that . There must be candid frank and constructive dialogues between the two sides .

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AIIB President Says Lending Increased During Pandemic

Jin Liqun, president of Beijing-based Asian Infrastructure Investment Bank, which is focused on providing loans in the region, discusses the outlook for the lender and its role in the pandemic recovery. He also shares his views on the tensions between China and the U.S. He speaks exclusively with Bloomberg's Tom Mackenzie on the sidelines of the Bund Summit in Shanghai. (Source: Bloomberg)

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