The World Bank Implementation Status & Results Report State Owned Financial Institutions Strengthening Project (P156837) State Owned Financial Institutions Strengthening Project (P156837) EUROPE AND CENTRAL ASIA | Serbia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 11 | ARCHIVED on 26-Apr-2023 | ISR55478 | Implementing Agencies: Ministry of Finance, Republic of Serbia Key Dates Key Project Dates Bank Approval Date: 20-Mar-2018 Effectiveness Date: 22-Aug-2018 Planned Mid Term Review Date: 14-Sep-2020 Actual Mid-Term Review Date: 07-Sep-2020 Original Closing Date: 01-Aug-2022 Revised Closing Date: 30-Apr-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve the performance of Banka Postanska Stedionica AD Beograd and promote the reform of Development Finance Institutions and Other State-Owned Financial Institutions. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Support the Reform of State Owned Financial Institutions:(Cost $44.98 M) Strengthen Institutional Capacity:(Cost $4.89 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The Project will close at the end of April 2023 with a Satisfactory rating. All Project results indicators have been achieved and the underlying Loan is close to fully disbursed. 4/26/2023 Page 1 of 5 The World Bank Implementation Status & Results Report State Owned Financial Institutions Strengthening Project (P156837) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program High Moderate Moderate Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Moderate Low Low Stakeholders Substantial Moderate Moderate Other -- Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve the performance of Banka Postanska Stedionica AD Beograd IN01268182 ►BPS gross amount of performing credit exposures to medium and large private sector enterprises is reduced compared to end-2016 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,050.00 700.00 540.00 1,620.00 Date 31-Dec-2016 31-Aug-2022 30-Dec-2022 30-Dec-2022 IN01268184 ►BPS gross NPLs are reduced compared to end-2016 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 23.32 5.71 5.78 11.66 Date 31-Dec-2016 31-Aug-2022 30-Dec-2022 30-Dec-2022 Promote the reform of Development Finance Institutions and Other State-Owned Financial Institutions IN01268183 ►Reduction in state-owned NPLs compared to end-2016 (Number, Custom) 4/26/2023 Page 2 of 5 The World Bank Implementation Status & Results Report State Owned Financial Institutions Strengthening Project (P156837) Baseline Actual (Previous) Actual (Current) End Target Value 3.87 1.83 0.93 0.98 Date 31-Dec-2016 30-Sep-2022 30-Dec-2022 30-Dec-2022 Based on new information received from the DIA regarding the level of state-owned NPLs on December Comments: 31, 2016, the baseline number was revised upwards from USD 3.10bn to USD 3.87bn. Intermediate Results Indicators by Components Restructure Banka Postanska Stedionica AD Beograd IN01268185 ►BPS is in compliance with the prudential ratios set forth in Selected NBS Decisions (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Dec-2016 31-Aug-2022 30-Dec-2022 30-Dec-2022 IN01268189 ►BPS in compliance with limit on lending to State Owned Enterprises (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Dec-2016 31-Aug-2022 30-Dec-2022 30-Dec-2022 IN01268191 ►BPS BoD adopts (i) strengthened risk management policies and the Executive Board adopts implementing procedures, and (ii) compensation scheme in line with approved 2018-2020 business plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Dec-2016 30-Sep-2022 30-Dec-2022 30-Dec-2022 IN01268192 ►BPS completes installation of core banking system and associated software, hardware and services (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Dec-2016 30-Sep-2022 30-Dec-2022 30-Dec-2022 Implement NPL Resolution Strategy and State-Owned Banks Strategy IN01268187 ►Updated NPL resolution strategy, which includes a strategy for state-owned NPLs with a separate action plan, has been adopted (Yes/No, Custom) 4/26/2023 Page 3 of 5 The World Bank Implementation Status & Results Report State Owned Financial Institutions Strengthening Project (P156837) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Dec-2016 30-Sep-2022 30-Dec-2022 30-Dec-2022 IN01268190 ►Tender issued for the sale of SOFIs' NPLs, in an approximate amount of EUR 145.6 million (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Dec-2016 30-Sep-2022 30-Dec-2022 30-Dec-2022 Complete Reforms and Develop Strategy on Development Finance IN01268188 ►Strategy for Development Finance has been adopted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 30-Dec-2016 30-Sep-2022 30-Dec-2022 30-Dec-2022 Support the Reform of State Owned Financial Institutions IN01268186 ►Number of outreach sessions organized with business representatives as a two-way interaction (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 30-Dec-2016 30-Sep-2022 30-Dec-2022 30-Dec-2022 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156837 IBRD-88320 Effective USD 50.00 50.00 0.00 44.11 0.95 98% Key Dates (by loan) 4/26/2023 Page 4 of 5 The World Bank Implementation Status & Results Report State Owned Financial Institutions Strengthening Project (P156837) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156837 IBRD-88320 Effective 20-Mar-2018 21-Mar-2018 22-Aug-2018 01-Aug-2022 30-Apr-2023 Cumulative Disbursements Restructuring History Level 2 Approved on 06-Apr-2020 ,Level Approved on 09-May-2020 ,Level 2 Approved on 21-Dec-2021 ,Level 2 Approved on 19-Dec-2022 Related Project(s) There are no related projects. 4/26/2023 Page 5 of 5