Eastern China's Shandong province is obligated to repay provincial government debt, the total amount of which will not exceed 20 percent of the province's GDP, Guo Shuqing, governor of the province, said.

"Nobody needs to worry. When Shandong has debt, it will certainly repay the money and pay the interest," said Guo Shuqing, who led China's securities regulator before becoming governor in 2012, at a meeting of Shandong delegates during the Third Session of the 12th NPC on March 7.

The Shandong provincial government holds a press conference during the Third Session of the 12th NPC on March 7. [Photo provided to China Daily]

Guo shrugged off the risk of the provincial government's debt, saying that the total amount was estimated to reach 1.1 trillion yuan ($179 billion).

"For some cities, towns and counties with a high debt ratio, funds need to be raised through various channels, including restructuring and selling of some assets to resolve the debt repayment issues," he said.

Guo said Shandong is speeding up its financial reform by substantially developing the private equity market and the multi-layer capital market.

Private capital in the province has exceeded 80 percent in fixed-asset investment, he said.

Guo also dismissed rumors that he might be a possible candidate for the next president of the People's Bank of China to replace current president Zhou Xiaochuan.

By Wang Qian