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

balance to achieve the twin goals of stabilisation and modernisation. particularly in the case of greece, the significant resources that are expected to be provided by next generation eu represent an opportunity to strengthen the country ’ s growth potential. these resources should be channelled into much needed growth - enhancing and job - creating investment projects and should be accompanied by a continuation of the ongoing reform process. conclusions let me conclude. europe has responded to a major challenge, but is not out of the woods yet. the ecb ’ s governing council stands ready to adjust all of its policies, depending on incoming data, in order to bring inflation in line with its medium - term aim. at the same time, european and greek national policies must continue to play their crucial role in absorbing the shock, supporting the recovery and achieving sustainable growth. next generation eu offers a great opportunity for greece. together with strong national policies, it may lay the foundations for a greek economy that will create jobs and prosperity. 3 / 3 bis central bankers'speeches