The World Bank Report No: ISR12030 Implementation Status & Results Kosovo Kosovo Financial Sector Strengthening & Market Infrastructure Project (P108080) Public Disclosure Copy Operation Name: Kosovo Financial Sector Strengthening & Market Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 29-Oct-2013 Infrastructure Project (P108080) Country: Kosovo Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Central Banking Authorities of Kosovo, Kosovo Banking Association, Association of Microfinance Institutions of Kosovo (AMIK), Deposit Insurance Fund of Kosovo Key Dates Board Approval Date 13-Dec-2007 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date 01-Apr-2014 Last Archived ISR Date 19-Mar-2013 Effectiveness Date 03-Jan-2008 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to (i) enhance the stability and development of the financial sector; and (ii) strengthen thefinancial secto� s underlying market infrastructure. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Assistance to CBK 1.67 Assistance to AMIK 0.24 Assistance to KBA 0.20 Establishment of a RTGS 1.87 Provision of seed funding to the DIFK 4.00 Public Disclosure Copy Establishment of a BCC 0.85 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating High High Implementation Status Overview Page 1 of 6 The World Bank Report No: ISR12030 CBK has made significant progress in the achieving the Project Development Objectives for the Financial Sector Strengthening and Market Infrastructure project (FSSMIP) in recent months. In particular, progress that has been made in the institutional development of DFIK that led to the disbursement of the seed financing for Deposit Insurance Fund of Kosovo (DIFK) in 2012. There were delays in procurement and disbursement for the components related to the BCC and RTGS in late 2012 and 2013. However, disbursement for the RTGS and implementation of the system has begun. Public Disclosure Copy Now that the seed funding for DIFK has disbursed following the completion of the withdrawal conditions, DIFK and the Bank team are focused on the closing conditions that need to be completed before the project closes that primarily relate to the institutional development of DIFK. The Bank has worked closely with DIFK on developing an action plan that focuses on institutional development building of DIFK. Considering the significant involvement of KfW (both financially and in terms of technical assistance), the Bank is also working closely with KfW to ensure that the assistance provided by both the Bank and KfW is complementary and consistent. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Status of updated legal and regulatory Text Value Non existent Achieved Achieved framework for banks and NBFIs and capacity Date 01-Jan-2008 01-Oct-2013 30-Jun-2014 building in the financial sector Comments Status of operationalization of RTGS Text Value Non existent Non existent Achieved Date 14-Jun-2011 01-Oct-2013 30-Apr-2014 Comments Status of establishment of a fully operational Text Value Non existent Non existent Achieved Business Continuity Center (BCC) Date 14-Jun-2011 01-Oct-2013 30-Apr-2014 Comments The work permit for the BCC has been received and procurement will begin shortly. However, the target date of April, 30 2014 will not Public Disclosure Copy be met and will require an extension to be completed. Status of establishment of the DIFK Text Value Non existent Operational Operational Date 14-Jun-2011 31-Dec-2012 30-Jun-2014 Comments Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR12030 Indicator Name Core Unit of Measure Baseline Current End Target Conponent 1 - Number of missing and/or Number Value 0.00 0.00 0.00 outdated regulations and directives drafted for Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Public Disclosure Copy banks and NBFIs new laws, which have been Comments 100% achieved passed recently or to be passed over the life of the project Component 1 - Automated database for off-site Text Value Off-site supervision database implementation is on the 3rd Off-site supervision acquired and implemented is non existent phase: preparation of the database for reporting forms. 4 phases are monitoring foreseen in total and analysis used in day to day work/supervision database Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Comments Component 1 - Percentage of CBK staff trained Percentage Value 0.00 0.00 100.00 in using analytical tool and regarding new Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 regulations Comments Component 1 - Number of training sessions to Number Value 0.00 19.00 2.00 MFIs in transforming into deposit taking Date 01-Jan-2008 31-Dec-2012 30-Jun-2014 institutions and to other MFIs Comments Component 1 - Number of training sessions to Number Value 0.00 19.00 2.00 bank officers and KBA staff on banking sector Date 01-Jan-2008 01-Oct-2013 30-Jun-2014 topics Comments Component 2 - Status of operational integration Text Value Non existent Non existent Achieved of the RTGS system with the existing Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Electronic Interbank Clearing System (EICS) Comments Component 2 - Status of operational integration Text Value Non existent Non existent Achieved of the RTGS system with the Central Securities Public Disclosure Copy Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Depositary (CSD) Comments Percentage of transactions in GoK and CBK Percentage Value 0.00 0.00 100.00 securities settled in the RTGS system in Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 conformity with the principles of Delivery Comments Not measurable until versus Payment (DvP) implementation of RTGS is completed. Component 2 - Percentage of payments settled Percentage Value 0.00 0.00 95.00 immediately or with a short delay (<15 minutes) Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Page 3 of 6 The World Bank Report No: ISR12030 Comments Not measurable without implementation of RTGS Component 3 - Status of completion of Text Value Non existent Non existent Achieved Public Disclosure Copy refurbishment of the BCC facility Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Comments Component 3 - Percentage of failover from the Percentage Value 0.00 CBK's primary processing site to BCC, and Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 restoration back to the primary site, Comments Since the BCC is not successfuly demonstrated for all CBK's critical systems operational, this indicator is not yet relevant and cannot be measured. Component 6- Contributed amount from GoK Amount(USD) Value 0.00 3.30 3.30 Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Comments GoK contribution transfered Component 6 Premiums received from Text Value No 446,900 Yes member banks Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Comments Return on Assets/Equity Percentage Value 2.00 100.00 Date 01-Jan-2008 30-Sep-2012 30-Jun-2014 Comments Q3 2012 This for monitoring only as core indicators no end value needed Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Outstanding Microfinance Loan Portfolio Amount(USD) Value 67206388.00 100.00 Date 01-Jan-2008 30-Jun-2012 30-Jun-2014 Comments Exchange rate EUR/USD - This for monitoring only as Public Disclosure Copy 1.25/ amount in Euro = core indicators no end value 109,149. This indicator was needed added to meet the the Bank's reporting requirementsforMSME and will not be used to monitor and evaluate the project's performance. Page 4 of 6 The World Bank Report No: ISR12030 Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Public Disclosure Copy Volume of Bank Support: Institutional Amount(USD) Value 0.00 200000.00 240000.00 Development - Microfinance Date 01-Jan-2008 01-Dec-2011 30-Jun-2014 Comments EUR 93146 (accumulated) - Assistance to AMIK (PAD, Exchange rate EUR/USD = P.44) 1.3362 % active loans to women - Microfinance Percentage Value 38.00 1.00 Date 01-Jan-2008 30-Jun-2012 30-Jun-2014 Comments This indicator was added to This for monitoring only as meet the the Bank's reporting core indicators no end value requirements for MSME and needed will not be used to monitor and evaluate the project's performance. Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Date 01-Jan-2008 20-Dec-2012 30-Jun-2014 Breakdown Comments Portfolio at Risk - Microfinance Percentage Value 6.00 1.00 Date 30-Jun-2012 30-Jun-2014 Comments on average among the 17 This for monitoring only as MFIs served. core indicators no end value needed Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental No of active loan accounts -Microfinance Number Value 51041.00 1.00 Public Disclosure Copy Date 01-Jan-2008 01-Jan-2012 30-Jun-2014 Comments This indicator was added to This for monitoring only as meet the the Bank's reporting core indicators no end value requirements for MSME and needed will not be used to monitor and evaluate the project's performance. Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Page 5 of 6 The World Bank Report No: ISR12030 Data on Financial Performance (as of 07-Oct-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P108080 IDA-50060 Effective 14-Jun-2011 03-Aug-2011 25-Jan-2012 30-Jun-2014 30-Jun-2014 P108080 IDA-H3410 Effective 13-Dec-2007 14-Dec-2007 03-Jan-2008 30-Jun-2010 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P108080 IDA-50060 Effective XDR 4.30 4.30 0.00 2.51 1.79 58.00 P108080 IDA-H3410 Effective XDR 1.30 1.30 0.00 0.80 0.50 62.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History Level two Approved on 27-Apr-2010 Related Projects P122084-Kosovo, Financial Sector Strengthening and Markets Infrastructure Project - Additional Finance Page 6 of 6