Stocks tank as Greece admits it won't hit targets

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Pan Pylas, AP Business Writer, On Monday October 3, 2011, 5:36 am EDT
LONDON (AP) -- Stocks took another battering Monday after Greece admitted it won't meet its deficit reduction targets, raising renewed fears that the country will not get crucial bailout loans it needs to avoid a default.

On Sunday, Greece's finance ministry said the deficit this year will likely be 8.5 percent of its gross domestic product, higher than the 7.8 percent previously anticipated, and blamed a deeper-than-expected recession for the failure. The Greek economy is projected to shrink 5.5 percent this year.

The revelation that Greece is finding it increasingly difficult to reduce its borrowings in spite of all its austerity measures has raised fears that international creditors will effectively pull the plug.

Without the latest euro8 billion ($10.8 billion) loan, Greece has said it won't be able to pay all its bills starting in mid-October.

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