The World Bank Report No: ISR2555 Implementation Status & Results Armenia Public Disclosure Copy Access to Finance for Small and Medium Enterprises (P115109) Operation Name: Access to Finance for Small and Medium Enterprises Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Last Modified Date: 29-Dec-2010 (P115109) Country: Armenia Approval FY: 2009 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Central Bank of Armenia Key Dates Board Approval Date 24-Feb-2009 Original Closing Date 28-Sep-2011 Planned Mid Term Review Date 15-Sep-2010 Last Archived ISR Date 30-Jun-2010 Effectiveness Date 16-Apr-2009 Revised Closing Date 28-Sep-2011 Actual Mid Term Review Date 15-Nov-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) To maintain or increase Armenian small and medium enterprises' access to medium term finance. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Credit line 50.00 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The project team would like to highlight the support that the Bank provided in response to a request from Armenian Government and establish a credit line facility to mitigate the impact of the global financial crisis on rapidly deteriorating economic situation in the country. During nearly one and half year of implementation the project was advancing smoothly towards achieving its development objective through proving necessary liquidity support in local currency to participating financial institutions and improving the access to finance for domestic SMEs. Results Page 1 of 4 The World Bank Report No: ISR2555 Project Development Objective Indicators Public Disclosure Copy Indicator Baseline Current End Target Indicator Name Value Value Value Cumulative amount of medium term credit granted by the PFIs under 0.00 20763345.00 0.00 the project (including revolving funds) Date Date Date 16-Apr-2009 30-Nov-2010 28-Sep-2011 Type Unit of Measure Comment Comment Comment Custom Indicator Amount(USD) This is the same as the Cumulative amount of the credit line disbursed to SMEs by the PFIs. Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Number of non-performing SME loans (more than 30 days delinquent) / 7.57 6.40 5.00 total number of loans (NPLs defined by CBA as Category II, III and IV Date Date Date loans) 16-Apr-2009 29-Oct-2010 28-Sep-2011 Type Unit of Measure Comment Comment Comment Custom Indicator Percentage SMEs for the entire banking Number of non-performing loans to system. total loans for all banking system Indicator Baseline Current End Target Indicator Name Value Value Value Cumulative amount of the credit line disbursed to SMEs by the PFIs 0.00 20763345.00 50000000.00 from the original proceeds of the Credit Date Date Date 16-Apr-2009 30-Nov-2010 28-Sep-2011 Public Disclosure Copy Type Unit of Measure Comment Comment Comment Custom Indicator Amount(USD) Indicator Baseline Current End Target Indicator Name Value Value Value Non-performing loans (more than 30 days delinquent) / total loans 7.00 0.90 5.00 Date Date Date 15-Sep-2009 30-Nov-2010 28-Sep-2011 Type Unit of Measure Comment Comment Comment Custom Indicator Percentage All loans for the PFIs Arrears under the AFSME project Page 2 of 4 The World Bank Report No: ISR2555 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Cumulative number of SMEs financed by the PFIs from the original 0.00 1294.00 proceeds of the Credit Date Date Date 16-Apr-2009 30-Nov-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Number Under the AFSME Project including revolving financing. Indicator Baseline Current End Target Indicator Name Value Value Value Volume of Bank Support: Lines of Credit - SME 0.00 30000000.00 50000000.00 Date Date Date 16-Apr-2009 30-Nov-2010 28-Sep-2011 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Disbursed to the client#s designated account. Indicator Baseline Current End Target Indicator Name Value Value Value Outstanding SME Loan Portfolio 14418705.00 Date Date Date 30-Nov-2010 28-Sep-2011 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Under the AFSME facility. Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value No of active loan accounts -SME 928.00 Date Date Date 30-Nov-2010 28-Sep-2011 Type Unit of Measure Comment Comment Comment Core Indicator Number Outstanding SME Loan number in the PFIs# portfolio under the AFSME project Data on Financial Performance (as of 06-Dec-2010) Financial Agreement(s) Key Dates Page 3 of 4 The World Bank Report No: ISR2555 Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P115109 IBRD-76570 Effective 24-Feb-2009 26-Feb-2009 16-Apr-2009 28-Sep-2011 Public Disclosure Copy Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115109 IBRD-76570 Effective USD 50.00 50.00 0.00 30.13 19.88 60.00 Disbursement Graph Key Decisions Regarding Implementation The project is progressing smoothly towards the development results by providing mid-term financing to SMEs in Armenia. As of end-November 2010 loans have been provided to Public Disclosure Copy about 1,300 SMEs operating in trade, services, production and agricultural sectors for both investment and working capital needs, and so far SMEs have received more than USD 20.7 million. Lending is provided by 9 banks and 1 non-bank financial institution and several are expected to join the project in forthcoming year. The project supervision team believes that overall the PFIs are more satisfied with the facility after the requested revisions into the POM were authorized by the Bank in the summer. And in general, the participating banks were found to be operating in line with the AFSME project requirements. The mission had a wrap-up meeting with the Chairman of the CBA, Director of the GAFPMU and other senior CBA officials wherein few issues to further improve the performance were discussed. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. 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