The World Bank Report No: ISR2540 Implementation Status & Results Turkey Public Disclosure Copy Access to Finance for SMEs (P082822) Operation Name: Access to Finance for SMEs (P082822) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Last Modified Date: 03-Jan-2011 Country: Turkey Approval FY: 2006 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Turkiye Halk Bankasi (Halkbank), Turkiye Sinai Kalkinma Bankasi (TSKB) Key Dates Board Approval Date 08-Jun-2006 Original Closing Date 30-Apr-2012 Planned Mid Term Review Date Last Archived ISR Date 27-May-2010 Effectiveness Date 26-Jul-2007 Revised Closing Date 30-Apr-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project's main development objective is to increase Turkish small and medium enterprises (SME) 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 EUR100 million equivalent credit line (EUR60 million and US$48 million) to be intermediated by TSKB 125.00 a credit line (original SME Loan plus two additional financing) of EUR310.2 million and US$160.0 to 575.00 be intermediated by Halkbank Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The project is progressing very well towards the development results by providing access to medium term finance to 671 firms so far under the original loan and the additional finance loans. The loans have been used for both working capital and investment purposes, either through expanding their capacity by buying new equipment or civil engineering upgrades/ rehabilitation. The loans are well dispersed both sectorally and geographically. Most of the SMEs that have utilized the funds from the project came from textile industry, tourism, energy and rubber and plastic production. The geographical coverage extends to most parts of Turkey with an emphasis on underserved areas such as the North, East, South East and the Central part. Page 1 of 6 The World Bank Report No: ISR2540 Results Public Disclosure Copy Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Number of SMEs and value of sub-loans made available (approved by (a) 0 loans (a) 772 total loans: 720 (619 (a) 500: 188 by Halkbank and 50 banks, but not necesarily disbursed) by TSKB and Halkbank to (b) 0 US$ SMEs) by Halkbank and 52 (52 million by TSKB SMEsunder the project SMEs) by TSKB (b) 700 $ Date (b) US$ 477.4 million by Halkbank Date Type Unit of Measure 28-Jul-2007 and US$ 129.7 by TSKB Comment 30-Jun-2011 Custom Indicator Text Date Comment 15-Dec-2010 Comment A total of US$ 75.3 million has started flowing back to Halkbank and the money has been recycled to make additional 151 loans totaling US$ 75.3 million (of which $ 41.6 million was allocated as working capital loans) to 125 firms. Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Maturity of sub-loans: share of sub-loan value with maturity of at least 1 0 100 percent ... year. Date Date Date 15-Jul-2007 15-Dec-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Public Disclosure Copy Custom Indicator Text All loans have a maturity of at least 12 months. Page 2 of 6 The World Bank Report No: ISR2540 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Currency of sub-loans: share of sub-loan value in local currency. 0 percent 0 percent Local currency disbursement is not Date Date expected until local currency medium-term interests declines 28-Jul-2007 15-Dec-2010 substantially. Type Unit of Measure Comment Comment Date Custom Indicator Text 30-Jun-2011 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Geographical coverage: Number of provinces with active SME clients (a) 0 (a) Halkbank is targeting 58 25% of loans given by HB in (a) throughout the country; and (b) in the Eastern and Central Regions (b) 0 provinces, while TSKB covers 23. underserved Date (b)undersrved areas as defined in Date LA Type Unit of Measure 28-Jul-2007 30-Jun-2012 Date Custom Indicator Text Comment Comment 15-Dec-2010 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Loan dispersion: number of SME clients in the project (a) throughout (a) 0 (a) 671 (a) 500 the country and (b) in the Eastern and Central Regions. (b) 0 (b)137 (b) 100 Date Date Date Type Unit of Measure 28-Jul-2007 15-Dec-2010 30-Jun-2011 Public Disclosure Copy Custom Indicator Text Comment Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value Loan dispersion: number of loans financed by the project (a) (a) 0 (a) 772 (a) 500 throughout the country and (b) in the Eastern and Central Regions. (b) 0 (b)135 (b) 100 Date Date Date Type Unit of Measure 28-Jul-2007 15-Dec-2010 30-Jun-2011 Custom Indicator Text Comment Comment Comment Page 3 of 6 The World Bank Report No: ISR2540 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Disbursed amount financed by the project (a) throughout the country (a) US$ 0 (a) US$594.5 (a) US$ 700 million and (b) in the Eastern and Central Regions. (b) US$ 0 (b) US$ 87.7 (b) US$120 million Date Date Date Type Unit of Measure 28-Jul-2007 15-Dec-2010 30-Jun-2011 Custom Indicator Text Comment Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value Volume of Bank Support: Lines of Credit - SME 0.00 550000000.00 700000000.00 Date Date Date 26-Jul-2007 15-Dec-2010 30-Apr-2012 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Indicator Baseline Current End Target Indicator Name Value Value Value Outstanding SME Loan Portfolio 820000000.00 960000000.00 0.00 Date Date Date 15-Dec-2010 30-Apr-2012 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) There is no target for the PFI's total lending to SMEs Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this 100.00 indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Page 4 of 6 The World Bank Report No: ISR2540 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Portfolio at Risk - SME 0.00 1.60 5.00 Date Date Date 31-Dec-2006 15-Dec-2010 30-Apr-2012 Type Unit of Measure Comment Comment Comment Core Indicator Percentage NPLs remain low Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this 100.00 100.00 indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Data on Financial Performance (as of 23-Dec-2010) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P082822 IBRD-73890 Closed 08-Jun-2006 22-Jun-2007 26-Jul-2007 31-Aug-2010 P082822 IBRD-73900 Effective 08-Jun-2006 22-Jun-2007 26-Jul-2007 30-Apr-2012 P082822 IBRD-74620 Effective 19-Jun-2007 22-Jun-2007 26-Jul-2007 30-Apr-2012 P082822 IBRD-76060 Effective 09-Dec-2008 16-Dec-2008 12-Jan-2009 30-Apr-2012 P082822 IBRD-78210 Effective 15-Dec-2009 17-Dec-2009 21-Jan-2010 30-Apr-2012 Disbursements (in Millions) Public Disclosure Copy Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P082822 IBRD-73890 Closed USD 60.07 60.07 0.00 70.59 0.00 118.00 P082822 IBRD-73900 Effective USD 120.14 120.14 0.00 124.23 8.47 103.00 P082822 IBRD-74620 Effective USD 66.70 66.70 0.00 77.39 0.00 116.00 P082822 IBRD-76060 Effective USD 200.00 200.00 0.00 212.67 0.00 106.00 P082822 IBRD-78210 Effective USD 250.00 250.00 0.00 192.92 42.80 77.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR2540 Public Disclosure Copy Key Decisions Regarding Implementation There are none. Restructuring History There has been no restructuring to date. Related Projects P107173-Access to Finance for SMEs, P108140-Access to Finance for SMEs - Second Additional Financing, P112949-Access to Finance for SMEs - Additional Financing Public Disclosure Copy Page 6 of 6