BEIJING — The Ministry of Finance (MOF) said on Dec 16 that the debt risks of local governments in the country are generally under control.

By the end of 2020, local governments in China had 25.66 trillion yuan (about $4.03 trillion) in outstanding debt.

If compared to the financial strength of local governments, their debt ratio stood at 93.6 percent, below the international standard of 100 percent to 120 percent, said Vice-Minister of Finance Xu Hongcai.

By the end of last year, the outstanding debt of the Chinese government stood at 46.55 trillion yuan, putting its debt-to-GDP ratio at 45.8 percent, which is below the 60-percent prudential limit recognized by the international community.

The government debt-to-GDP ratio is also below the levels of major market economies and emerging market economies, Xu added.

In recent years, the hidden debt risks of local governments have been steadily released, Xu said, adding that the risks are on the whole manageable.

"By forestalling and defusing hidden debt risks, our ultimate goal is to completely eliminate all hidden debts nationwide," Xu said, stressing that the country would also establish an institutional framework on long-term supervision to contain the formation of hidden debts.