between investment and saving has declined to its lowest in a long time, which, if you remember your national accounting identities, is directly equivalent to the current account being at multi - decade lows. but the trade balance story is not just a resources story. there has been strong growth in exports of education and tourism. the share of services in australia's exports has increased from 17 per cent in the 1980s to 21 per cent now. the other noteworthy development of late has been the strong growth in manufactured exports. these include pharmaceutical goods and medical devices, and have grown by 15 per cent over the past two years. the other part of the current account is the net income balance. the net income balance is the difference between how much it costs to service the country's foreign liabilities ( for example, interest payments on foreign debt ) and the earnings on australia's foreign assets ( for example, dividend payments to residents from foreign share holdings ). the income balance has widened a little in https : / / www. rba. gov. au / speeches / 2019 / sp - dg - 2019 - 08 - 27. html 3 / 12 8 / 28 / 2019 a balance of payments | speeches | rba recent years, but is around the middle of the range it has been in since the late 1980s at 3. 4 per cent of gdp. i will come back to this later. net foreign liabilities each quarter that australia funds its current account deficit with net borrowing from the rest of the world, we gradually add to the stock of net foreign liabilities ( nfl ) we owe to the rest of the world. as australia ran current account deficits through the 1970s, 80s, 90s and 2000s, that stock of nfl grew, peaking at 60 per cent of gdp in 2009. but since then, reflecting the lower levels of the cad and correspondingly lower net capital inflows, the stock of australia's nfl ( as a share of gdp ) has declined over the past decade to be 50 per cent of gdp currently ( graph 2 ). the decline in nfl as a share of gdp masks some significant changes in the composition of both the gross foreign liabilities and gross foreign assets. graph 2 it is important to stress the need to look at the gross flows and stocks, not just the net numbers. there are large capital inflows and outflows all the time, even when the net capital flow ( or the current account deficit ) is low. as a result

the state ( repayable advances ) and two schemes implemented by the hellenic development bank – a guarantee scheme and a co - financed interest subsidy scheme for new corporate loans. these are expected to reach an overall loan volume of about €13 billion, or 7. 7 % of gdp. they come on top of the broader fiscal package in response to the pandemic, including interest subsidies for existing performing loans, bonds and bank overdrafts, reductions and deferrals of tax and social contributions, and labour market support measures. so far, the ecb ’ s policy measures and the relevant greek policies have supported bank lending to corporates, which has increased substantially, while credit standards have remained broadly stable. a large net flow of loans – above €1 billion – was registered in july, supported in particular by the guarantee scheme of the hellenic development bank. at the same time, greek small and medium - sized enterprises continue to have serious concerns about their lack of access to financing. their financing gap remains high, despite the increased availability of bank loans and the decline in interest rates. in order to underpin the recovery, policy support remains necessary to safeguard the continued supply of credit. looking ahead, it is essential to complete the financial sector reforms needed to support the process of npl reduction and guarantee an adequate supply of credit during the recovery. these reforms include improving the e - auctions framework, revising the insolvency framework, reducing the backlog of pending personal insolvency cases before the courts, and clearing called state guarantees on bank loans. the funding provided by next generation eu is an opportunity for greece 2 / 3 bis central bankers'speeches the funding from next generation eu creates an extraordinary opportunity. for the first time in history, the european union will issue common debt to counter a common shock. this will bring fiscal policy more in tune with monetary policy at the european level, and may represent an important step for european integration : we borrow together to recover from the crisis and to invest in our future. all eu countries will benefit from this common response. but to be effective, european measures require careful planning and decisive action at the national level. in time, the need to buffer the immediate impact of the pandemic will be replaced by the need for investment and reform to support a sustainable recovery. as the national support measures are phased out, a well - planned and coordinated approach will be necessary if we want to avoid cliff effects. policies will have to find the right