The World Bank Report No: ISR4038 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: 8 Status: ARCHIVED Last Modified Date: 25-Aug-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 16-Jan-2011 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$160.0 to 575.00 be intermediated by Halkbank Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The project is progressing very well towards achieving the development results by providing access to medium term finance to 709 SMEs so far under the original loan and the two additional finance loans. In total, US$ 631.1 million equivalent has been approved to SMEs for both working capital and investment purposes. SMEs supported through the Project managed to increase their employment by as much as 9,328 people, as new funds helped them run smoothly their operations without significant difficulties and strengthen their long- term business opportunities. The loans are well dispersed both sectorally and geographically. Overall, almost 20 percent of the disbursement went to underserved areas such as the North, East, South East and the Central part. Most of the SMEs that have utilized the funds from the project came from textile industry, tourism, energy, rubber and plastic production. Page 1 of 5 The World Bank Report No: ISR4038 Results Public Disclosure Copy Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of SMEs and value of sub-loans made Text Value (a) 0 (a) 709 (a) 500 available (approved by banks, but not (b) US$ 0 (b) US$ 631.1 (b) US$ 700.0 necesarily disbursed) by TSKB and Halkbank Date 28-Jul-2007 15-Jun-2011 30-Apr-2012 to SMEsunder the project Comments A total of US$ 120.4 million has started flowing back to Halkbank and the money has been recycled to make additional 246 loans to 195 SMEs. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Maturity of sub-loans: share of sub-loan value Text Value 0 100% 100% with maturity of at least 1 year. Date 15-Jul-2007 15-Jun-2011 30-Apr-2012 Comments All loans have a maturity of at least 1 year. Currency of sub-loans: share of sub-loan value Text Value 0% 0% at least 2% in local currency. Date 28-Jul-2007 15-Jun-2011 30-Apr-2012 Comments No lending in TRY as mid- Based on the discussion the June 2011. The mission team had with the borrower encouraged Halkbank to during this mission, a small swap US$/EUR amount and amount of local currency extend TRY loans in particular lending is expected bythe end to the underserved area of the project. Public Disclosure Copy where there is a demand. Geographical coverage: Number of provinces Text Value (a) 0 (a) Halkbank is reaching to 61 25% of loans given by HB in with active SME clients (a) throughout the (b) 0 provinces, while TSKB covers underserved country; and (b) in the Eastern and Central 22 provinces. Regions (b) 36 provinces for Halkbank and 8 for TSKB. Date 28-Jul-2007 15-Jun-2011 30-Apr-2012 Comments Overall, almost 20 percent of the disbursement went to underserved areas. Page 2 of 5 The World Bank Report No: ISR4038 Indicator Name Core Unit of Measure Baseline Current End Target Loan dispersion: number of SME clients in the Text Value (a) 0 (a) 709 (a) 500 Public Disclosure Copy project (a) throughout the country and (b) in the (b) 0 (b) 167 (b) 100 Eastern and Central Regions. Date 28-Jul-2007 15-Jun-2011 30-Apr-2012 Comments Loan dispersion: number of loans financed by Text Value (a) 0 (a) 754 (a) 500 the project (a) throughout the country and (b) in (b) 0 (b) 183 (b) 100 the Eastern and Central Regions. Date 28-Jul-2007 15-Jun-2011 30-Apr-2012 Comments Disbursed amount financed by the project (a) Text Value (a) US$ 0 (a) US$ 631.1 million (a) US$ 700 million throughout the country and (b) in the Eastern (b) US$ 0 (b) US$ 106.2 million (b) US$120 million and Central Regions. Date 28-Jul-2007 15-Jun-2011 30-Apr-2012 Comments Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 665300000.00 700000000.00 Date 26-Jul-2007 15-Jun-2011 30-Apr-2012 Comments as of July 20 2011 in US$ equivalent Outstanding SME Loan Portfolio Amount(USD) Value 0.00 11200000000.00 0.00 Date 15-Jun-2011 30-Apr-2012 Comments Optional for core indicators if Total outstanding SME loans There is no target for the used for World Bank reporting (Halkbank only) PFI's total lending to SMEs; it purposes only. is optional for core indicators if used for World Bank reporting purposes only. Percentage of project-supported institutions Percentage Value 50.00 50.00 50.00 that are reporting on this indicator Public Disclosure Copy Sub Type Date Supplemental Comments No of active loan accounts -SME Number Value 0.00 367118.00 Date 28-Jul-2007 15-Jun-2011 30-Apr-2012 Comments Optional for core indicators if There is no target for the used for World Bank reporting number of active loan purposes only. accounts; it is optional for core indicators if used for World Bank reporting purposes only Page 3 of 5 The World Bank Report No: ISR4038 Percentage of project-supported institutions Percentage Value 100.00 100.00 100.00 that are reporting on this indicator Public Disclosure Copy Sub Type Date Supplemental Comments Portfolio at Risk - SME Percentage Value 0.00 2.00 5.00 Date 31-Dec-2006 15-Jun-2011 30-Apr-2012 Comments NPLs remain low less than 5% Data on Financial Performance (as of 17-Mar-2011) 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) 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 0.00 132.27 1.24 110.00 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 Public Disclosure Copy Disbursement Graph Page 4 of 5 The World Bank Report No: ISR4038 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 5 of 5