The World Bank Implementation Status & Results Report TR Third Access to Finance for SMEs (SME III) (P130864) TR Third Access to Finance for SMEs (SME III) (P130864) EUROPE AND CENTRAL ASIA | Turkey | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 9 | ARCHIVED on 17-Oct-2018 | ISR34297 | Implementing Agencies: T. C. Ziraat Bankasi A.S. (Ziraat Bank), Republic of Turkey, T.C. Ziraat Bankasi A.S. (Ziraat Bank) Key Dates Key Project Dates Bank Approval Date: 26-Jun-2013 Effectiveness Date: 13-Dec-2013 Planned Mid Term Review Date: 17-Oct-2016 Actual Mid-Term Review Date: 14-Nov-2016 Original Closing Date: 29-Dec-2017 Revised Closing Date: 29-Dec-2018 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve access to medium and long-term finance for small and medium enterprises through lease financing. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name A credit line to Ziraat to be on-lent for intermediation through PFIs to SMEs:(Cost $300.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Low Low Implementation Status and Key Decisions Project restructuring concluded in May 2017, accelerated project implementation significantly. Ziraat Bank has achieved significant progress by signing up new leasing companies, increasing commitments as well as disbursements to Project Financial Intermediaries (PFIs) and final beneficiaries. Total disbursement from the World Bank increased to US$ 120 million in 2017 and US$ 48 million in 2018 after a stagnant 2016. There are seven leasing companies as PFIs which signed a Subsidiary Loan Agreement (SLA) with Ziraat Bank including Garanti Leasing, Finans Leasing, Yapi Kredi Leasing, Burgan Leasing, Ziraat Leasing, Vakif Leasing and Alternatif Leasing. As of July, 2018, Ziraat Bank has withdrawn all project funds (US $ 300 million) from the World Bank. Commitments to PFIs, and PFIs’ disbursements to final beneficiaries have increased to 89 percent (US$ 267 million) and 85 percent (US $ 254 million) of the total Loan amount respectively. Despite the exchange rate and interest rate volatility in the last four months loan utilization remained relatively strong. There is still an uncommitted US$ 33 million in Ziraat Bank’s accounts which needs urgent action since project will be closed on December 29, 2018. 10/17/2018 Page 1 of 5 The World Bank Implementation Status & Results Report TR Third Access to Finance for SMEs (SME III) (P130864) Project development objective (PDO) indicators and intermediate results indicators are on track and progressing well towards achievement of the PDO. The project has financed 718 SMEs since its launch. More than 35 percent of these SMEs were new clients to the PFIs (compared to 10 percent target). 15.18 percent of the loans were disbursed in underserved regions (compared to 15 percent target). The weighted average maturity of sub-loans financed under the project has exceeded the average maturity of PFI’s own loan portfolio by 88 percent Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Other -- Low Low Overall -- Low Low Results PDO Indicators by Objectives / Outcomes to improve access to medium and long-term finance for small and medium enterprises through lease fin IN00519383 ►Ratio of the average maturity of sub-loans financed under the project, over the PFIs’ average maturity of SME leasing portfolio (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.75 1.88 >1 Date 01-Jul-2013 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519385 ►Number of SME beneficiaries financed by PFIs under the project (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 423.00 718.00 500.00 Date 01-Jul-2013 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519392 10/17/2018 Page 2 of 5 The World Bank Implementation Status & Results Report TR Third Access to Finance for SMEs (SME III) (P130864) ►Number of new SME beneficiaries financed by PFIs under the project (that have not received financing from the PFI in the past) as apercentage of the total number of SME beneficiaries financed by PFIs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.80 36.00 10.00 Date 01-Jul-2013 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519394 ►Number of PFIs introducing new leasing products (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 01-Jul-2013 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519396 ►Number of new PFIs under the project (that have not received funding from IFIs in the past, cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 Date 01-Jul-2013 30-Jun-2017 29-Jun-2018 31-Dec-2018 Intermediate Results Indicators by Components A credit line to Ziraat to be on-lent for intermediation through PFIs to SMEs IN00519384 ►Number of PFIs under the project (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 7.00 6.00 Date 01-Jul-2013 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519391 ►Based on Core Indicator: Volume of Bank Support: Lines of Credit - SME (cumulative, US$ million) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 252.00 300.00 300.00 Date 01-Jul-2013 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519400 ►Percent of Loan disbursed financing Sub-projects in priority regions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14.68 15.18 15.00 Date 01-Jul-2013 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519393 10/17/2018 Page 3 of 5 The World Bank Implementation Status & Results Report TR Third Access to Finance for SMEs (SME III) (P130864) ►Based on Core Indicator: Outstanding SME loan portfolio (US$ million) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 1,545 2,385 n/a Date 01-Jul-2013 30-Jun-2017 29-Dec-2017 31-Dec-2018 IN00519395 ►Based on Core Indicator: Number of active SME loan accounts (not cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 18,944 19,400 n/a Date 01-Jul-2013 30-Jun-2017 29-Dec-2017 31-Dec-2018 IN00519397 ►Based on Core Indicator: Portfolio Quality: Portfolio at risk – SME (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.90 1.70 1.60 n/a Date 31-Dec-2012 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519398 ►Based on Core Indicator: Financial Sustainability: Return on Assets (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.70 2.40 1.70 n/a Date 31-Dec-2012 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519399 ►Based on Core Indicator: Financial Sustainability: Return on Equity (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 17.60 22.10 14.70 n/a Date 31-Dec-2012 30-Jun-2017 29-Jun-2018 31-Dec-2018 IN00519401 ►Compliance with prudential regulation (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 31-Dec-2012 30-Jun-2017 29-Jun-2018 31-Dec-2018 Data on Financial Performance Disbursements (by loan) 10/17/2018 Page 4 of 5 The World Bank Implementation Status & Results Report TR Third Access to Finance for SMEs (SME III) (P130864) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P130864 IBRD-82750 Effective USD 300.00 300.00 0.00 300.00 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P130864 IBRD-82750 Effective 26-Jun-2013 22-Aug-2013 13-Dec-2013 29-Dec-2017 29-Dec-2018 Cumulative Disbursements Restructuring History Level 2 Approved on 02-Sep-2015 ,Level 2 Approved on 31-Mar-2017 Related Project(s) There are no related projects. 10/17/2018 Page 5 of 5