Greece vows action on debt as pressure builds

Greece vowed on Wednesday to do whatever it takes to check its vast deficit but took yet another beating on markets,as EU partners piled pressure on Athens to take action after its rating was cut to its worst in a decade. The risk premium on Greek government bonds jumped and bank stocks tumbled on Wednesday,extending Tuesdays losses on Fitch Ratings downgrade of its debt to BBB,showing increasing risk aversion among investors. Greece has faced harsh criticism over its credibility and increasing borrowing costs since the new Socialist government revealed the deficit was twice as big as previously forecast and would reach 12.7 per cent of GDP this year. We must close the credibility gap to survive as a sovereign and cohesive nation, Greek Prime Minister George Papandreou told a televised cabinet meeting. We are determined to do whatever it takes to control the huge deficit, he said.