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Little progress and much confusion. This is what the creditors see in the discussions in Brussels at a time when a number of proposals are on the table for measures aimed at filling the liquidity abyss. According to information, apart from the tax on bank transactions, the government is discussing an increase of the tax on stock exchange transactions, as well as an eventual tax on deposits above certain size.

The likelihood of a staff-level agreement is not particularly high. This pushes the tranche further into the future, despite Greece’s needs to finance its June debt both domestically and overseas. According to representatives of the ministry of finance, the creditors insist on the implementation of measures that Athens finds rather unpalatable. The agenda of the negotiations (expected to run until Sunday and resume on Tuesday) has been loaded with extra issues, but all of them are bones of contention. Here they are:

1. The macro-indicators. Ministry of finance people maintain that creditors are pushing for unreasonably high budget surplus targets. The government believes that the 2015 primary surplus should be around 1% of GDP; it will go up to 2% for 2016. 2017 and subsequent years will be seeing surpluses at about 3.5% of GDP. "The creditors insist on higher surpluses," say ministry officials. But these could only be feasible if new financial measures are put in place.

2. VAT and other measures. The VAT theme has become central to the negotiations. Lenders insist on two rates instead of the scheme proposed by Athens (23% - 14% - 7%). Finance ministry officials say that the institutions want a high ratio of 23%, and a lower one at 12%, with the energy sector geared to the higher one: a recession-yielding option for the Greek side. Creditor representatives told Kathimerini that the high rate must be around 23%, and there should be a single lower rate, without specifically pegging it. other measures are also put on the table, such as a 0.1% tax on bank transactions over €500 (including through ATMs). An increase of the tax on stock exchange transactions and the imposition of a tax on deposits above a certain size are also mooted. The ways to apply the deposits tax are reportedly being discussed in detail already.

3. The pension system. Senior representatives of the ministry of finance argued that creditors insist on zero deficit in the auxiliary pension funds, which will lead to cuts in supplementary pensions. However, this is a ‘red line’ for the government. Therefore, it prefers to make concessions on other issues (e.g. VAT) to make up for not having to apply pension cuts. The creditors have no use for early retirement schemes, and the 13th pension will most likely go down the drain, too.

4. Privatisation. Greek representatives admit some ‘convergence’ in this area, but the government proposals have only covered about half of the revenues envisaged for the next five years.

5. Employment. Athens believes that agreement on the contentious issues will only be reached at a later stage.

6. Non-performing loans. Loose ends remain.

7. The commodity market and the closed professions. The Greek side has made its proposals on these matters, and believes that it has reached an agreement with creditors on them.