OFFICIAL
DOCUMErNTS
Supplemental Letter No. 2
TURKiYE SINAi KALKINMA BANKASI A.$.
August 22, 2014
International Bank for
Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Re:       Loan No. 8409-TR
(Innovative Access to Finance Project)
Performance Monitoring Indicators
Dear Sirs and Mesdames:
This refers to paragraph A.1 of Section II of Schedule 2 to the Loan Agreement of even date
herewith between TORKIYE SINAI KALKINMA BANKASI A.$. (the Borrower) and the International
Bank for Reconstruction and Development (the Bank). The Borrower hereby confirms to the Bank that
the indicators set out in this letter shall serve as a basis for the Borrower to monitor and evaluate the
progress of the Project and the achievement of the objectives:
1.     Key indicators for measuring the project development objective (PDO) include:
(a)    Ratio of the average maturity of Islamic sub-finance under the project, over the average
maturity of the Islamic finance PFIs' portfolio not financed under the project.
(b)    Ratio of export factoring sub-finance in the factoring portfolio financed under the project,
over the factoring company PFIs' export factoring finance in the factoring portfolio not
financed under the project.
(c)    Number of SME beneficiaries financed by PFIs under the project (cumulative).
(d)    Number of EOE beneficiaries financed by PFIs under the project (cumulative).
2.     Key Intermediate Results indicators include:
(a)    Number of PFIs under the project (cumulative).
(b)    Volume of Bank support (cumulative, US$ million).
(c)    Volume of Bank support to SMEs (cumulative, US$ million).
(d)    Outstanding export finance portfolio (US$ million). The indicator will be reported by
PFI, both for their entire portfolio and the Bank-financed portion only.
(e)    Outstanding SME finance portfolio (US$ million). The indicator will be reported by PFI,
both for their entire portfolio and the Bank-financed portion only.
(f)    Number of active export finance accounts (not cumulative). The indicator will be
reported by PFI, both for their entire portfolio and the Bank-financed portion only.


(g)    Number of active SME finance accounts (not cumulative). The indicator will be reported
by PFI, both for their entire portfolio and the Bank-financed portion only.
(h)    Portfolio at risk. The indicator will follow the local definition for NPLs, as regulated by
BRSA. The indicator will be reported for TSKB and by PFI, both their entire portfolio
and the Bank-financed portion only.
(i)    Return on Assets (%). The indicator will be reported for TSKB and by PFI.
(j)    Return on Equity (%). The indicator will be reported for TSKB and by PFI.
(k)    Percent of Loan disbursed financing Sub-projects in priority regions.
(1)    Compliance with prudential regulation. The indicator will be reported for TSKB and by
PFI.
3.    In addition to the above indicators, the project will monitor some additional indicators. These
indicators will be monitored for analytical purposes only and will serve as useful inputs to define
policies and projects aimed at further improving SMEs' access to credit in Turkey:
(a)    Performance of PFIs under the project: (i) Average maturity of the Islamic finance PFIs'
portfolio not financed under the project; (ii) Percent of the factoring company PFIs'
export factoring finance in the factoring portfolio not financed under the project.
(b)    Performance of SMEs under the Islamic finance sub-component of the project:
(i) Increase in employment; (ii) Increase in sales; (iii) Increase in exports.
(c)    Profile of SMEs under the project: (i) Size of SMEs (number of employees);
(ii) Economic sector; (iii) Geographical location; (iv) Female owner or shareholder.
(d)    Profile offinance under the project: (i) Size of sub-finance; (ii) Maturity of sub-finance;
(iii) Interest or mark-up of sub-finance.
Very truly yours,
TURKivE SINAI           NMA BAN       I A..
By
Authrz     epresenttives