The World Bank Implementation Status & Results Report Strengthening Afghanistan’s Financial Intermediation (P171886) Strengthening Afghanistan’s Financial Intermediation (P171886) SOUTH ASIA | Afghanistan | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2021 | Seq No: 5 | ARCHIVED on 21-Oct-2022 | ISR53489 | Implementing Agencies: Da Afghanistan Bank, Islamic Republic of Afghanistan, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 28-Sep-2020 Effectiveness Date: 06-Jan-2021 Planned Mid Term Review Date: 30-Jun-2023 Actual Mid-Term Review Date: Original Closing Date: 31-Oct-2025 Revised Closing Date: 31-Oct-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to strengthen institutional capacity for financial stability and to enhance access to finance for micro, small and medium enterprises. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Strengthening Credit Guarantee Fund:(Cost $20.00 M) Component 2: SME Matching Grants Program:(Cost $40.00 M) Component 3: Strengthening Deposit Insurance:(Cost $17.00 M) Component 4: Enhancing DAB’s IT Infrastructure:(Cost $16.00 M) Component 5: Strengthening DAB’s Regulatory and Supervisory Capacity:(Cost $5.00 M) Component 6: Project Management:(Cost $2.00 M) Component 7: Contingent Emergency Response Component Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Afghanistan Reconstruction Trust Fund (ARTF) in the project was canceled based on the consideration that the project cannot be effectively implemented under the current extraordinary situation in Afghanistan. Undisbursed IDA grants under this project will remain suspended until a decision is made by the World Bank 10/21/2022 Page 1 of 7 The World Bank Implementation Status & Results Report Strengthening Afghanistan’s Financial Intermediation (P171886) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies High High High Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Strengthen institutional capacity for financial stability and to enhance access to finance for MSMEs IN01204338 ►Bank resolution and crisis management framework established (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 22-Jun-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 Achievement of this indicator will be assessed by the World Bank’s technical team in consultation with Comments: relevant development partners based on established international good practices in this area. IN01204339 ►Legal and Regulatory Framework for Deposit Insurance Scheme established (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 22-Jun-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 Achievement of this indicator will be assessed by the World Bank’s technical team in cooperation with Comments: other relevant partners based on established international good practices in this area (e.g. alignment with 10/21/2022 Page 2 of 7 The World Bank Implementation Status & Results Report Strengthening Afghanistan’s Financial Intermediation (P171886) International Association of Deposit Insurers (IADI) Core Principles for Effective Deposit Insurance Systems). IN01204340 ►Volume of MSME loans facilitated by ACGF (Millions) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.03 10.84 10.84 154.54 Date 31-May-2020 30-Jun-2021 30-Jun-2021 30-Sep-2025 This indicator monitors the total volume of newly disbursed loans guaranteed by ACGF from the beginning Comments: of the project on cumulative basis. IN01204411 ►Private capital mobilized through SME matching grants (Millions) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 29.50 Date 22-Jun-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 This indicator monitors the beneficiary SMEs' matching contributions under the matching grants program. Comments: All targets are cumulative. Intermediate Results Indicators by Components Component 1: Strengthening Credit Guarantee Fund IN01204412 ►Number of MSME loans facilitated by ACGF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 89.00 714.00 714.00 3,557.00 Date 31-May-2020 30-Jun-2021 30-Jun-2021 30-Sep-2025 This indicator monitors the total number of newly disbursed loans guaranteed by ACGF from the Comments: beginning of the project on cumulative basis. IN01204417 Of which to women owned/managed MSMEs (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 243.00 243.00 142.00 Date 22-Jun-2020 30-Jun-2021 30-Jun-2021 30-Sep-2025 IN01204419 ►Number of PFIs in ACGF portfolio (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 5.00 5.00 8.00 10/21/2022 Page 3 of 7 The World Bank Implementation Status & Results Report Strengthening Afghanistan’s Financial Intermediation (P171886) Date 31-May-2020 30-Jun-2021 30-Jun-2021 30-Sep-2025 This indicator monitors the number of PFIs with MSME loans guaranteed by ACGF. All targets are Comments: cumulative. IN01204421 ►Number of PFIs that have received TA and reviewed their policies, products and/or processes to improve access to finance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 4.00 4.00 8.00 Date 31-May-2020 30-Jun-2021 30-Jun-2021 30-Sep-2025 This indicator monitors the number of PFIs that have received technical assistance from ACGF towards Comments: strengthening their MSME lending and introduced agreed changes (e.g. procedural, operational), as assessed and confirmed by ACGF. All targets are cumulative. IN01204423 ►MSME Portfolio Quality (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 7.00 7.00 4.50 Date 31-May-2020 30-Jun-2021 30-Jun-2021 30-Sep-2025 This indicator monitors portfolio quality of MSME loans guaranteed by ACGF. The monitoring indicator is Comments: portfolio-at-risk at 30 days (PAR 30) calculated as annual average of monthly PAR>30 days of outstanding guaranteed loan portfolio. SME Matching Grants Program IN01204413 ►Number of SMEs supported with matching grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,000.00 Date 22-Jun-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 This indicator monitors the number of beneficiary SMEs that have received project funds under the Comments: matching grants program. All targets are cumulative. IN01204418 Of which women owned/operated SMEs (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 09-Jul-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 IN01204420 Of which SMEs that received a bank loan (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 10/21/2022 Page 4 of 7 The World Bank Implementation Status & Results Report Strengthening Afghanistan’s Financial Intermediation (P171886) Date 09-Jul-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 IN01204422 ►Report on survey of MSME borrowers and matching grant recipients prepared and disclosed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 09-Jul-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 This indicator monitors preparation and disclosure of a report summarizing the findings of a survey of Comments: MSME beneficiaries under the project (i.e. SMEs which received matching grants and MSMEs which received loans guaranteed by ACGF). ACGF will be responsible for preparing the report. Strengthening Deposit Insurance IN01204414 ►DIF Minimum Coverage Ratio (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 12.00 12.00 12.00 Date 09-Jul-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 This indicator monitors the minimum coverage ratio of the Deposit Insurance Fund (DIF) calculated as: Comments: DIF / total insured deposits. Enhancing DAB's IT Infrastructure IN01204415 ►Core Banking System Modernized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 09-Jul-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 This indicator monitors the upgrade of DAB's Core Banking System. This indicator will be considered Comments: achieved following the procurement and installation of the required IT system at DAB. IN01204416 ►Core credit infrastructure modernized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 09-Jul-2020 15-Aug-2021 15-Aug-2021 30-Sep-2025 This indicator monitors the IT modernization of the Collateral Registry (CR) and Public Credit Registry Comments: (PCR) at DAB. The indicator will be considered achieved following procurement and installation/upgrade of the required IT systems at CR and PCR. Performance-Based Conditions 10/21/2022 Page 5 of 7 The World Bank Implementation Status & Results Report Strengthening Afghanistan’s Financial Intermediation (P171886) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P171886 IDA-D7230 Effective USD 100.00 100.00 0.00 27.33 73.72 27% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P171886 IDA-D7230 Effective 28-Sep-2020 15-Oct-2020 06-Jan-2021 31-Oct-2025 31-Oct-2025 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 10/21/2022 Page 6 of 7 The World Bank Implementation Status & Results Report Strengthening Afghanistan’s Financial Intermediation (P171886) There are no related projects. 10/21/2022 Page 7 of 7