The Greek government’s efforts to convince its lenders in Washington for a timely positive review on the adjustment program and exploit differences between the IMF and the EU institutions seems to have fallen through. Sources from the US capital, where the IMF-World Bank summer meeting is being held, say that the Quartet are pressing the Greek side to pass additional measures worth 3.6bln Euros, besides the agreed 5.4bln as a counter balance in case the adjustment program is derailed.

Both IMF Director Christine Lagarde and European Commissioner on Finances Pierre Moscovici agreed that Greece needs to present ‘reliable and realistic measures’ for the review to proceed for the next trance disbursed. The Greek government is scrambling to raise more cash through indirect taxes to reach the 5.4bln Euro package it proposed to the lenders.

Sources say that the Greek government has tabled series of proposals to its lenders involving a VAT hike from 23 percent to 24 and a number of other indirect tax increases, in an effort to avoid pension and wage cuts. All the matters were raised during a brief 20-minute meeting between IMF Director Christine Lagarde and Greek Finance Minister Euclid Tsakalotos late Saturday night.

Lagarde stressed more work is needed on the part of Greece, adding that no immediate outcome should be expected. In light of the IMFs doubts on whether the goals laid down in the Greek program are feasible, international media suggest the country’s creditors will push for more measures. German Finance Minister Wolfgang Schauble reportedly said the goal of all parties is to reach an agreement within next week, when the representatives of the Quartet return to Athens after the Eurogroup meeting.