The World Bank Report No: ISR8148 Implementation Status & Results Turkey Second Turkey Access to Finance for Small and Medium Enterprises Project (P118308) Public Disclosure Copy Operation Name: Second Turkey Access to Finance for Small and Medium Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 02-Jan-2013 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 01-May-2012 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 Ziraat Bank: A US$200 million credit line to be intermediated through ZiraatBank as a retail bank 200.00 directly to SMEs. Vakif Bank: A US$200 million credit line to be intermediated through VakıfBank as a retail bank 200.00 directly to SMEs. Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Implementation Status Overview The project is progressing well towards the development results by providing access to medium term finance. So far, 72.1 percent of the loan (US $360.7 million) had been disbursed Page 1 of 7 The World Bank Report No: ISR8148 to beneficiary SMEs, with Ziraat accounting for US $114 million; Vakif for US $146.7 million; and Kalkinma (through its intermediaries, Deniz Bank, Garanti Bank and Garanti Leasing) for US $100 million. Kalkinma Bank has completed disbursement of its portion (US $ 100 million) by September 2012. 567 sub-loans have been extended under the project, with most companies coming from the manufacturing sector. Maturities vary from 24 to 120 months, with an average of 52 months. Sub-loans are being extended both in foreign currency and Turkish Lira. The proceeds for a large proportion of the sub-loans (close to 71 percent) are being used for working capital purposes. Disbursements to underserved areas are 10.5 Public Disclosure Copy percent of total sub-loans. Locations Country First Administrative Division Location Planned Actual Turkey Not Entered Yozgat Turkey Not Entered Van Turkey Not Entered Sanliurfa Turkey Not Entered Tunceli Turkey Not Entered Sivas Turkey Not Entered Siirt Turkey Not Entered Nigde Turkey Not Entered Nevsehir Turkey Not Entered Mus Turkey Not Entered Mardin Turkey Not Entered Malatya Turkey Not Entered Kirsehir Turkey Not Entered Kahramanmaras Turkey Not Entered Hakkari Public Disclosure Copy Turkey Not Entered Erzurum Turkey Not Entered Erzincan Turkey Not Entered Elazig Turkey Not Entered Diyarbakir Turkey Not Entered Bitlis Turkey Not Entered Bingol Page 2 of 7 The World Bank Report No: ISR8148 Country First Administrative Division Location Planned Actual Turkey Not Entered Agri Public Disclosure Copy Turkey Not Entered Adiyaman Turkey Not Entered Osmaniye Turkey Not Entered Igdir Turkey Not Entered Aksaray Turkey Not Entered Batman Turkey Not Entered Karaman Turkey Not Entered Kirikkale Turkey Not Entered Sirnak Turkey Not Entered Kilis Turkey Not Entered Zonguldak Turkey Not Entered Trabzon Turkey Not Entered Tokat Turkey Not Entered Sinop Turkey Not Entered Samsun Turkey Not Entered Rize Turkey Not Entered Ordu Turkey Not Entered Kastamonu Public Disclosure Copy Turkey Not Entered Kars Turkey Not Entered Gumushane Turkey Not Entered Giresun Turkey Not Entered Corum Turkey Not Entered Cankiri Turkey Not Entered Artvin Turkey Not Entered Amasya Page 3 of 7 The World Bank Report No: ISR8148 Turkey Not Entered Bartin Turkey Not Entered Karabuk Public Disclosure Copy Turkey Not Entered Ardahan Turkey Not Entered Bayburt Turkey Not Entered Bozcaada Turkey Not Entered Gokceada Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of Participating Financial Institutions Number Value 0.00 6.00 5.00 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments By the end of 2011 Kalkinma Bank added Garanti Leasing among the PFIs under the project Quality of Project Financed Portfolio (NPL Percentage Value 0.00 0.00 Ratio) Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments Target is <7 percent as indicated in the PAD Share of Finance Provided to Underserved Percentage Value 0.00 10.05 25.00 Regions Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments Increase in Sale in Beneficiary SMEs Amount(USD) Value 0.00 309427999.00 Public Disclosure Copy Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments This figure will be updated in Target is >0 as indicated in the next ISR after end 2012 PAD sales data is released for companies Increase in Employment in Beneficiary SMEs Number Value 0.00 3347.00 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments Target is >0 as indicated in PAD Page 4 of 7 The World Bank Report No: ISR8148 Number of SME Beneficiaries Financed Under Number Value 0.00 567.00 200.00 the Project Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Return on Assets/Equity Percentage Value 1.98 1.18 Date 06-Jul-2010 30-Jun-2012 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank - (n/a) Return on Assets/Equity Percentage Value 3.10 1.90 Date 06-Jul-2010 30-Jun-2012 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank - (n/a) Return on Assets/Equity Percentage Value 2.00 1.50 Date 06-Jul-2010 30-Jun-2012 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank - (n/a) Portfolio at Risk - SME Percentage Value 6.10 3.50 Date 06-Jul-2010 30-Jun-2012 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank Portfolio at Risk - SME Percentage Value 2.30 2.70 Date 06-Jul-2010 30-Jun-2012 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank - (n/a) Portfolio at Risk - SME Percentage Value 10.80 4.20 Date 06-Jul-2010 30-Jun-2012 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank - n/a Outstanding SME Loan Portfolio Amount(USD) Value 2800000000.00 10541000000.00 3000000000.00 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Public Disclosure Copy Comments For Vakif Bank For Vakif Bank For Vakif Bank Outstanding SME Loan Portfolio Amount(USD) Value 2358000000.00 6736000000.00 2558000000.00 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank Outstanding SME Loan Portfolio Amount(USD) Value 316000000.00 766400000.00 400000000.00 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank No of active loan accounts -SME Number Value 40000.00 95652.00 40075.00 Page 5 of 7 The World Bank Report No: ISR8148 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank No of active loan accounts -SME Number Value 92119.00 142241.00 92195.00 Public Disclosure Copy Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank No of active loan accounts -SME Number Value 530.00 202.00 580.00 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma 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 25-Sep-2012 30-Sep-2014 Comments No Baseline Garanti Leasing was included in the project as a PFI and it is in compliance with prudential norms as well Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 146.70 199.50 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 114.00 199.50 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 100.00 99.75 Date 25-Sep-2012 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank Volume of Bank Support (%) Percentage Value 0.00 72.00 100.00 Date 06-Jul-2010 25-Sep-2012 30-Sep-2014 Comments 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 25-Sep-2012 30-Sep-2014 Comments No Baseline Data on Financial Performance (as of 30-Nov-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P118308 IBRD-79020 Effective 15-Jun-2010 06-Jul-2010 19-Oct-2010 30-Sep-2014 30-Sep-2014 Page 6 of 7 The World Bank Report No: ISR8148 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P118308 IBRD-79030 Effective 15-Jun-2010 06-Jul-2010 12-Aug-2010 30-Sep-2014 30-Sep-2014 P118308 IBRD-79040 Effective 15-Jun-2010 06-Jul-2010 12-Aug-2010 30-Sep-2014 30-Sep-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P118308 IBRD-79020 Effective USD 100.00 100.00 0.00 100.00 0.00 100.00 P118308 IBRD-79030 Effective USD 200.00 200.00 0.00 136.26 63.74 68.00 P118308 IBRD-79040 Effective USD 200.00 200.00 0.00 178.73 21.27 89.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 7 of 7