(Yicai Global) March -- The Ministry of Finance said Thursday that risks of China's local government debts are controllable and measures are being taken to prevent any increase in hidden debts.
The debt balances of both China's central and local governments are within the legal limit, Minister of Finance Liu Kun told a press conference on the sidelines of the annual legislative session.
The debt balance of local governments stood at 18.39 trillion yuan (about 2.74 trillion U.S. dollars) at the end of last year, well below the official ceiling of 21 trillion yuan, official data showed.
China is "very serious" about hidden debts, and prohibits the debt-raising practices of local governments that disregard solvency, Liu said.
The ministry will take a sound approach in handling existing debts, strictly prevent illegal borrowing, and ensure that no systemic risks will emerge, Liu said.