The World Bank Report No: ISR15244 Implementation Status & Results Serbia Deposit Insurance Strengthening Project (P146248) Public Disclosure Copy Operation Name: Deposit Insurance Strengthening Project (P146248) Project Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: 28-Jun-2014 Country: Serbia Approval FY: 2014 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Investment Project Financing Implementing Agency(ies): Key Dates Board Approval Date 25-Feb-2014 Original Closing Date 30-Jun-2016 Planned Mid Term Review Date Last Archived ISR Date Effectiveness Date Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to strengthen the financial and institutional capacity of the Deposit Insurance Agency, so as to enable it to meet its deposit insurance and bank resolution obligations and serve as a core part of financial sector safety net. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthen the financial capacity of the DIA 198.50 Strengthen the institutional capacity of the DIA 1.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Satisfactory Overall Risk Rating Substantial Implementation Status Overview This is the initial ISR for this project, which was approved by the World Bank Board of Executive Directors on February 25, 2014. The signing of the Loan Agreement and subsequent project effectiveness have been delayed, which was expected due to elections. Early elections were held in March 2014 and the new Government took office on April 27. Now that the new government is in place it is expected that the loan agreement will be signed by mid-June and that it will be ratified by Parliament in late June or early July and become effective by August. Page 1 of 5 The World Bank Report No: ISR15244 Locations No Location data has been entered Public Disclosure Copy Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Cumulative inflows into the Deposit Insurance Percentage Value 0.00 2.50 Fund equivalent to 2.5 percent insured deposits Date 31-Dec-2013 30-Jun-2016 Comments The baseline assumes that This is based on 2.5% of the the inflows that count for this insured deposit level of indicator only begin on December 31, 2013 of EUR January 1, 2014. 11.55 billion. Thus the minimum amount of inflows tobe achieved by the end of the project is EUR289m. DIA performing its legally mandated technical Yes/No Value No Yes functions in any future bank failures in which Date 31-Dec-2013 30-Jun-2016 DIF resources are utilized Comments This indicators reflects only This is meant to reflect that bank failures in which DIF the DIA has performed its resources are utilized after legally mandated technical January 1, 2014. To reflect functions in all bank failures in this, the baseline for which DIF resources have December 31, 2013 has is been utilized between "no". January 1, 2014 and the project closing date. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Premium Rate Percentage Value 0.40 0.40 Public Disclosure Copy Date 31-Dec-2013 30-Jun-2016 Comments The baseline premium rate for The baseline and end target 2013 is 0.40% of insured are the same as the premium deposits. increase of 0.2% will be in place only for 2014 and 2015. Stand-by funding available for DIF Text Value EUR 0 EUR 0 Date 31-Dec-2013 30-Jun-2016 Comments The indicator only measures The DLI puts in place the the stand-by funding in 2014 stand-by funding for 2014 and Page 2 of 5 The World Bank Report No: ISR15244 and 2015. In order to reflect 2015. Considering the this, the baseline is set as 0. increase in DIF inflows in 2014 and 2015, the baseline and end amount are the Public Disclosure Copy same. Number of Independent Board Members Number Value 0.00 3.00 Date 31-Dec-2013 30-Jun-2016 Comments Independence will be defined to (1) exclude individuals who: (i) primarily derive their income directly from the government; (ii) work for the NBS, (iii) work for agencies founded by the Republic of Serbia; (iii) work for public enterprises; (iv) work for a bank that operates in Serbia, or are members of the board of such banks; or (v) are members and/or employees and/or officers of any professional banking association, or of an entity related to it; and (2) not to exclude individuals who carry out academic or research functions (in any capacity) for research institutions or universities owned or funded by the Republic of Serbia. Additionally, the independent board members should have the minimum following qualifications: at least eight Public Disclosure Copy years of prior relevant experience in the financial sector, finance, law or auditing, or academia and research institutes (including those that are publically funded). Regular government financial stability Number Value 0.00 8.00 committee meetings Date 31-Dec-2013 30-Jun-2016 Page 3 of 5 The World Bank Report No: ISR15244 Comments This corresponds to the DLI that requires eight meetings of the government financial stability committee from Public Disclosure Copy January 1, 2014. Sharing of NBS risk information on problematic Yes/No Value No Yes banks with DIA Date 31-Dec-2013 30-Jun-2016 Comments Sharing of NBS Supervision Conclusions on Yes/No Value No Yes Problematic Banks with DIA Date 31-Dec-2013 30-Jun-2016 Comments Cumulative value recovered from bank Text Value EUR 0m EUR 110m bankruptcies since February 1, 2014 Date 31-Dec-2013 30-Jun-2016 Comments This is a measure of Amount expected to be recoveries since February 1, collected from February 1, 2014. Thus the baseline value 2014 and December 31, as of December 31, 2013 is 0. 2015. Information Collected by the MoF on State Yes/No Value No Yes Owned Banks. Date 31-Dec-2013 30-Jun-2016 Comments Data on Financial Performance (as of 26-Feb-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P146248 IBRD-83400 Not Effective 25-Feb-2014 30-Jun-2016 30-Jun-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P146248 IBRD-83400 Not Effective USD 200.00 200.00 0.00 0.00 200.00 0.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR15244 Public Disclosure Copy Key Decisions Regarding Implementation N/A Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5