which was initially 12 months, has been extended to 24 months. similarly, the deadline for granting of guarantees, which was originally 31 december 2020, has been extended to 30 june 2021. in addition, financial institutions should maintain the limits on working capital facilities up to that same date for all customers that have a guaranteed loan and comply with the eligibility requirements. this royal decree has also extended the insolvency moratorium, which was set to expire on 31 december this year, to 14 march 2021, with the aim of preventing firms that continue to experience temporary, pandemic - related financial difficulties from having to file for insolvency. this measure aims to reduce the risk of viable firms being eventually wound up, with the impact this would have both on the productive system and in terms of job losses. the available evidence suggests that the economic policy measures taken have helped to ease firms ’ financing conditions, which contrasts with what was seen in the international financial crisis that began in 2008. it is a consequence not only of the swift and forceful economic policy response, but also of the better financial situation of the banking system and, in particular, of the larger capital buffers built up by the banks in recent years that have enabled them to absorb losses in their credit portfolios. the different nature of the current crisis has probably also been a determinant in this respect. in any event, since 2020 q2 firms have resorted to debt on highly favourable terms to cover part of the increase in their liquidity needs. specifically, between february and september, the outstanding amount of corporate sector debt rose by almost 5 %. the increase was concentrated in particular in the months of march, april and may. the ico guarantee programme has played an important part in adding momentum to bank lending. as at 15 november, total funding granted under this programme amounted to €108, 032 million ( including the portion intended for the self - employed ). essentially, these funds have been provided to firms that faced greater funding difficulties, such as smaller firms and those most affected by the pandemic. in addition, the loans have been granted on highly favourable conditions, in terms of interest rates and maturities, thus improving the existing corporate debt maturity structure. firms ’ solvency risks i will now move on to firms ’ solvency risks. lower turnover has a negative impact on firms ’ revenues and reduces their ability to repay their debts. in addition, firms that record losses will see their capital decrease, while

a feature of the contagion effects in many advanced countries and emerging market economies. indeed, the failure of lehmann brothers, an erstwhile reputable investment bank delivered a major jolt to the crisis of confidence in the global financial system, heightening fears of insecurity on the part of all market players ( consumers, investors, borrowers and lenders alike ). indeed, the fallout of the financial crisis for financial institutions has been dramatic. major financial institutions such as aig ( american insurance group ), merrill lynch, and northern rock have had to be bailed out through capitalization with public funds or nationalization, because they are “ too big ” to fail or “ too coupled ” with other institutions to be allowed to fail. many others have simply declared bankruptcy and failed. for developing countries such as ours, this crisis threatens to roll back the considerable progress of recent years in terms of economic growth and financial stability, prospects for improved standards of living, and provision of social safety nets, should the contagion become more severe and the impact not mitigated and well managed. ghana has not been immune to the effects of the crisis but the impact has been limited. with the deepening global recession, the flow of remittances, a significant source of foreign exchange resources, seems to have slowed down. prices of ghana ’ s major exports commodities ( gold and cocoa ) remain reasonably firm, while oil prices have retreated for sometime on the international markets. let me add, however that the global conditions remain fluid, especially with regard to capital flows and investments needed to support growth in developing countries. one fundamental lesson from the global financial crisis is that a sound financial sector is vital to the health of the economy. over the past years, the financial sector has been built on a strong regulatory and supervisory framework and a modern payments and settlement infrastructure. this has facilitated the development of a banking sector that is reasonably efficient, financially innovative, competitive, profitable, and growing quite rapidly. the size of the balance sheet of the banking system expanded by 37. 2 percent to 52. 5 percent of gdp in 2008, from 37. 3 percent of gdp in 2003. total deposits have risen to 34. 2 percent of gdp from 23. 4 percent of gdp in 2003. the industry now has a branch network of 642 compared with 332 in 2003. mr. chairman, the ghanaian banking sector is on a sound footing and well - positioned to strengthen its intermediation role. the direct links