Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) KG Financial Sector Development Project (P125689) EUROPE AND CENTRAL ASIA | Kyrgyz Republic | Finance & Markets Global Practice | IBRD/IDA | Specific Investment Loan | FY 2012 | Seq No: 8 | ARCHIVED on 22-Oct-2015 | ISR19441 | Implementing Agencies: Kyrgyz Post Office, National Bank of the Kyrgyz Republic Key Dates Key Project Dates Board Approval date:08-Mar-2012 Effectiveness Date:25-Dec-2013 Planned Mid Term Review Date:31-Mar-2016 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2017 Revised Closing Date:30-Jun-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) Project Development Objectives are to: (i) enhance financial sector stability, and (ii) increase access to financial services. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Strengthening the legal, regulatory, and supervisory framework for banks, MFOs, and credit unions:(Cost $1.50 M) Enhancing financial services via KPOs network:(Cost $5.55 M) Modernizing the secured transactions and debt resolution regime:(Cost $1.00 M) Project coordination and monitoring:(Cost $0.80 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  High  High 10/22/2015 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) Implementation Status and Key Decisions Since the project was declared effective on December 25, 2013 and experienced some delays so far, it is in a early stage to report on progress towards the development objective of enhanced financial sector stability and increased access to finance. However, the project has made satisfactory progress on the administrative arrangement for (i) improving the legal, regulatory, and supervisory framework for the banking sector and to increasing the National Bank of the Kyrgyz Republic's (NBKR) capacity to monitor and address vulnerabilities; (iii) modernizing the secured transactions and debt resolution regime, and; (iv) strengthening the regime for moveable collateral registration and execution. The challenges that caused delays in the implementation of (ii) enhancing financial services via KPOs network component have been largely adressed in September 2015 and the implementation of this component is expected to accelarate in the coming period. There are no pending key decisions arising from the recent supervision missions. 10/22/2015 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  High  High Institutional Capacity for Implementation and Sustainability  --  High  High Fiduciary  --  Substantial  Substantial Environment and Social  --  Low  Low Stakeholders  --  High  High Other  --  --  -- Overall  --  High  High Results Project Development Objective Indicators PHINDPDOTBL  Legal, regulatory, and supervisory framework following international good practice to enhance stability is developed, adopted, and implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 Date 01-Dec-2011 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDPDOTBL  Number of transactions through KPO related to financial services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10000000.00 8200000.00 8200000.00 17000000.00 Date 15-Jan-2012 31-Dec-2013 31-Dec-2013 30-Jun-2018 10/22/2015 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) PHINDPDOTBL  Number of new annual registrations in the secured transactions registry, using moveable assets as collateral (alone or in combination with immoveable collateral) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 20.00 Date 31-Dec-2011 31-Dec-2013 31-Dec-2013 30-Jun-2018 Overall Comments Intermediate Results Indicators PHINDIRITBL  Adoption of modern supervision methods (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Supervisory framework Implementation Value lacking modern -- -- of Pillar 2 and 3 supervision methods of Basel II Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Upgraded ICT system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No incident of supervisory Value No -- -- setback for want of IT support. Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 10/22/2015 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) PHINDIRITBL  Contingency planning and crisis management framework (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No systemic crisis that was Value No -- -- not adequately addressed in time Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Improved staff capacity, measured in terms of number of years of staff experience in supervision departments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.00 2.00 4.50 Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Number of ICT-equipped Post Offices (with installed, operational front office cash terminals) connected to the central hub (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 360.00 Date 01-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Revenues from non-government transactions as a share of total KPO revenues from financial services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 8.60 8.60 20.00 Date 15-Jan-2012 31-Dec-2013 31-Dec-2013 30-Jun-2018 10/22/2015 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) PHINDIRITBL  Improved quality, reliability and cost-efficiency of small value payments operations, measured in terms of same day Straight Through Processing as a share of total transactions to&from bank accounts (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0% -- -- >30% Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Enhanced transparent financial performance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Annual audited Value No -- -- statements Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Introduction of performance measurement, in terms of accounting reports with separated profitability and risk analysis for financial services and postal services (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Monthly Value 0 -- -- financial reports Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Number of cashiers, tellers, postmasters and other operational staff completed NBKR training to operate financial services at KPO (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1200.00 Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 10/22/2015 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) PHINDIRITBL  Enhanced competitive outreach for last mile delivery of remittances, measured in terms of market share of KPO in total remittances (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Amended legal framework for moveable collateral and debt resolution regimes (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- -- Yes Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Issued regulations for the well-functioning of the collateral registry (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- -- Yes Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 PHINDIRITBL  Online system for registering collateral is operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No online system -- -- Yes Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 10/22/2015 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) PHINDIRITBL  Number of dissemination and capacity-building and training events held (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 28-Feb-2017 PHINDIRITBL  Increase in lending based on new registration of security interests in the registry, using moveable assets as collateral (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 20.00 Date 15-Jan-2012 05-Oct-2012 05-Oct-2012 28-Feb-2017 PHINDIRITBL  Increase in the debt recovery rate for creditors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 30 cents on the To be measured at end- dollar of 4% of Value -- -- 2011 insolvent companies Date 15-Jan-2012 -- -- 30-Jun-2018 PHINDIRITBL  Volume of Bank Support: Enabling Environment - SME (Amount(USD), Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 15-Jan-2012 21-Feb-2014 21-Feb-2014 30-Jun-2018 Overall Comments Data on Financial Performance 10/22/2015 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P125689 IDA-50670 Effective XDR 2.62 2.62 0.00 0.00 2.62 0% P125689 IDA-H7600 Effective XDR 3.28 3.28 0.00 0.57 2.71 17% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P125689 IDA-50670 Effective 08-Mar-2012 11-Jul-2013 25-Dec-2013 30-Jun-2017 30-Jun-2018 P125689 IDA-H7600 Effective 08-Mar-2012 11-Jul-2013 25-Dec-2013 30-Jun-2017 30-Jun-2018 Cumulative Disbursements Restructuring History Level Approved on 21-May-2013 Related Project(s) 10/22/2015 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KG Financial Sector Development Project (P125689) There are no related projects. 10/22/2015 Page 10 of 10 Public Disclosure Copy