The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) Long Term Export Finance (P156252) EUROPE AND CENTRAL ASIA | Turkey | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 7 | ARCHIVED on 27-Oct-2020 | ISR43264 | Implementing Agencies: Turkiye Ihracat Kredi Bankasi (Turk Eximbank), Turkiye Ihracat Kredi Bankasi (Turk Eximbank) Key Dates Key Project Dates Bank Approval Date: 18-Jul-2016 Effectiveness Date: 21-Feb-2017 Planned Mid Term Review Date: 01-Apr-2019 Actual Mid-Term Review Date: 01-Apr-2019 Original Closing Date: Revised Closing Date: 31-Jan-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve access to longer term finance for export oriented small, medium and large enterprises. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name The establishment and operation of a credit facility by Eximbank for the provision of subsidiary-finance to PFIs for the provision of sub-finance to SMEs and LEs to finance the Sub-projects.:(Cost $239.25 M) The establishment and operation of a credit facility by Eximbank for the provision of sub-finance to SMEs to finance the Sub-projects.:(Cost $60.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The Long Term Export Finance Project has been implemented in a volatile environment for Turkey’s banking sector, starting with exchange rate volatility in August 2018 and followed by exchange rate and asset quality pressures that were intensified with the COVID-19 pandemic. Turkey is one of the hardest hit countries in terms of number of COVID-19 cases, which resulted in a particularly severe demand and supply shock for the enterprise sector. Turkey is highly integrated into global value chains, which have been disrupted by COVID-19. With the global economy in recession, the demand for exports decreased. Exports and imports decreased by 12.9% and 1.2% respectively in the period of January-August 2020 (Foreign Trade Statistics, August 2020). At the same time, private commercial banks have been deleveraging since the 2018 currency crisis, due to reduced funding access and asset quality issues, which has negatively affected access to finance conditions for Turkish firms, including exporters negatively impacted by the crisis. Deleveraging and reduced access to external funding sources also further weakened the banking sector’s already limited ability to extend long-term maturities at an affordable cost to the real sector. The relevance of the Project and its PDO therefore remain high. 10/27/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) The entire IBRD loan amount has been disbursed and allocated to sub-loans for eligible exporting enterprises, with the exception of a small amount (1 Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 10/27/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) IN00886395 ►Number of SME beneficiaries financed by PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 195.00 202.00 260.00 Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886527 ►Volume of Bank support (cumulative, US$ million). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 294.00 299.00 300.00 Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 Improve access to longer term finance for export oriented large enterprises. IN00886394 ►Ratio of the average maturity of LE sub-financing under the project, over the average maturity of the PFIs? LE portfolio not financed under the project. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.22 1.53 >1 Date 25-Jul-2016 31-Dec-2019 31-Dec-2019 25-Jul-2020 IN00886526 ►Number of LE beneficiaries financed by PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 46.00 46.00 30.00 Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 Intermediate Results Indicators by Components The establishment and operation of a credit facility by Eximbank for the provision of subsidiary-finance to PFIs for the provision of sub-finance to SMEs and LEs to finance the Sub-projects. IN00886528 ►Number of active PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 9.00 6.00 Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886530 10/27/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) ►Based on Core Indicator: Volume of Bank Support: Lines of Credit - SME (cumulative, US$ million). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 209.62 237.99 180.00 Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886532 ►Export multiplier: Ratio of the export growth of SMEs and LEs under the project relative to the export growth of their equivalent sector. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.13 1.14 >1 Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886534 ►Based on Core Indicator: Outstanding SME finance portfolio (US$ million). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 16,426.95 15,177.86 n/a Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886536 ►Based on Core Indicator: Number of active SME finance accounts (not cumulative). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 526,282 627,019 n/a Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886538 ►Outstanding export finance portfolio (US$ million). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 29,965.58 26,713.97 n/a Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886539 ►Number of active export finance accounts (not cumulative). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 38,187 33,969 n/a Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886541 ►Gender: Percent of SME and LE beneficiaries financed under the project with at least 15 percent female participation in their workforce. (Text, Custom) 10/27/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 30.00 n/a Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886533 ►Based on Core Indicator: Financial Sustainability: Return on Equity (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.40 13.38 14.87 n/a Date 30-Sep-2015 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886535 ►Based on Core Indicator: Financial Sustainability: Return on Assets (%)(Percentage) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.20 1.63 2.12 n/a Date 30-Sep-2015 31-Dec-2019 30-Jun-2020 25-Jul-2020 The establishment and operation of a credit facility by Eximbank for the provision of sub-finance to SMEs to finance the Sub-projects. IN00886529 ►Percent of SMEs receiving sub-finance by Eximbank that are new exporters. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 9.80 10.00 Date 25-Jul-2016 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886531 ►Citizen Engagement: SMEs and LEs that feel project sub-finance reflected their needs. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 95.00 95.00 95.00 Date 25-Jul-2016 30-Sep-2019 30-Jun-2020 25-Jul-2020 IN00886540 ►Compliance with prudential regulation. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Sep-2015 31-Dec-2019 30-Jun-2020 25-Jul-2020 IN00886537 ►Based on Core Indicator: Portfolio Quality: Portfolio at risk (%). (Text, Custom) 10/27/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) Baseline Actual (Previous) Actual (Current) End Target Value 0.30 0.30 0.40 n/a Date 30-Sep-2015 31-Dec-2019 30-Jun-2020 25-Jul-2020 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156252 IBRD-86300 Effective USD 300.00 300.00 0.00 300.00 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156252 IBRD-86300 Effective 26-Jul-2016 24-Oct-2016 21-Feb-2017 31-Jan-2021 31-Jan-2021 Cumulative Disbursements 10/27/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/27/2020 Page 7 of 7