The World Bank Report No: ISR2658 Implementation Status & Results Turkey Public Disclosure Copy Second Turkey Access to Finance for Small and Medium Enterprises Project (P118308) Operation Name: Second Turkey Access to Finance for Small and Medium Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Last Modified Date: 11-Jul-2011 Enterprises Project (P118308) Country: Turkey Approval FY: 2010 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Key Dates Board Approval Date 15-Jun-2010 Original Closing Date 30-Sep-2014 Planned Mid Term Review Date Last Archived ISR Date 04-Jan-2011 Effectiveness Date 12-Aug-2010 Revised Closing Date 30-Sep-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project's main development objective is to broaden and deepen the access of Turkish small and medium enterprises to medium- and long-term finance, with a view to ultimately contributing to an expansion of productive activities and job creation. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Kalkinma Bank : A US$ 100 million wholesale credit line to Kalkinma Bank to be intermediated 100.00 through private retail banks/leasing co Ziraat Bank: A US$200 million credit line to be intermediated through ZiraatBank as a retail bank 200.00 directly to SMEs. Public Disclosure Copy Vakif Bank: A US$200 million credit line to be intermediated through VakıfBank as a retail bank 200.00 directly to SMEs. Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The project is progressing well towards the development results by providing access to medium term finance. So far, 140 firms have received about US$100 million in financing. The Page 1 of 6 The World Bank Report No: ISR2658 loans have been used for both working capital and investment purposes, either for expanding the beneficiaries' productive capacity by buying new equipment or civil engineering upgrades/ rehabilitation. The share of working capital sub-loans is high, at almost 87 percent (US$82.9 million). The geographical coverage extends to most parts of Turkey including Public Disclosure Copy underserved areas such as the North, East, South East and the Central part. In total 14 sub-loans have been made in the underserved regions, which corresponds to 9 percent of the total disbursed amount. Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of SME Beneficiaries Financed Under Number Value 0.00 140.00 200.00 the Project Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments Increase in Employment in Beneficiary SMEs Number Value 0.00 315.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments Target is >0 as indicated in PAD Increase in Sale in Beneficiary SMEs Amount(USD) Value 0.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments Target is >0 as indicated in PAD Share of Finance Provided to Underserved Percentage Value 0.00 9.00 25.00 Regions Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments Quality of Project Financed Portfolio (NPL Percentage Value 0.00 0.00 Ratio) Public Disclosure Copy Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments Target is <7 percent as indicated in the PAD Number of Participating Financial Institutions Number Value 0.00 5.00 5.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR2658 Indicator Name Core Unit of Measure Baseline Current End Target Borrower Performance (Compliance with Text Value (a)compliant, (b)compliant, (c) (a)compliant, (b)compliant, (c) Public Disclosure Copy Prudential Norms) / (a)Ziraat Bank, (b)Vakif compliant compliant Bank, (c)Kalkinma Bank Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments No Baseline Volume of Bank Support (%) Percentage Value 0.00 20.00 100.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 0.00 99.75 Date Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 64.20 199.50 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 34.70 199.50 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank PFI Performance (Compliance with Prudential Text Value (a)compliant, (b)compliant, (a)compliant, (b)compliant, Norms) / (a)Garanti Bank, (b)Deniz Bank Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments No Baseline No of active loan accounts -SME Number Value 530.00 523.00 580.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Public Disclosure Copy Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank No of active loan accounts -SME Number Value 92119.00 120653.00 92195.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank No of active loan accounts -SME Number Value 40000.00 56370.00 40075.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank Page 3 of 6 The World Bank Report No: ISR2658 Indicator Name Core Unit of Measure Baseline Current End Target Outstanding SME Loan Portfolio Amount(USD) Value 316000000.00 518000000.00 400000000.00 Public Disclosure Copy Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank Outstanding SME Loan Portfolio Amount(USD) Value 2358000000.00 4646000000.00 2558000000.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank Outstanding SME Loan Portfolio Amount(USD) Value 2800000000.00 6496000000.00 3000000000.00 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank Portfolio at Risk - SME Percentage Value 10.80 6.37 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank - n/a Portfolio at Risk - SME Percentage Value 2.30 1.40 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank - (n/a) Portfolio at Risk - SME Percentage Value 6.10 4.80 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank Return on Assets/Equity Percentage Value 2.00 1.30 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Public Disclosure Copy Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank - (n/a) Return on Assets/Equity Percentage Value 3.10 1.50 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank - (n/a) Return on Assets/Equity Percentage Value 1.98 2.18 Date 06-Jul-2010 02-May-2011 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank - (n/a) Data on Financial Performance (as of 09-Jun-2011) Page 4 of 6 The World Bank Report No: ISR2658 Financial Agreement(s) Key Dates Public Disclosure Copy Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P118308 IBRD-79020 Effective 15-Jun-2010 06-Jul-2010 19-Oct-2010 30-Sep-2014 P118308 IBRD-79030 Effective 15-Jun-2010 06-Jul-2010 12-Aug-2010 30-Sep-2014 P118308 IBRD-79040 Effective 15-Jun-2010 06-Jul-2010 12-Aug-2010 30-Sep-2014 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P118308 IBRD-79020 Effective USD 100.00 100.00 0.00 0.25 99.75 0.00 P118308 IBRD-79030 Effective USD 200.00 200.00 0.00 103.04 96.96 52.00 P118308 IBRD-79040 Effective USD 200.00 200.00 0.00 78.00 122.00 39.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Projects Page 5 of 6 The World Bank Report No: ISR2658 P123101-Second Access to Finance for SMEs (SME II) Additional Finance Public Disclosure Copy Public Disclosure Copy Page 6 of 6