The World Bank Report No: ISR13718 Implementation Status & Results Kosovo Kosovo Financial Sector Strengthening & Market Infrastructure Project (P108080) Public Disclosure Copy Operation Name: Kosovo Financial Sector Strengthening & Market Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: 10-Mar-2014 Infrastructure Project (P108080) Country: Kosovo Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Central Banking Authorities of Kosovo, Kosovo Banking Association, Association of Microfinance Institutions of Kosovo (AMIK), Deposit Insurance Fund of Kosovo Key Dates Board Approval Date 13-Dec-2007 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date 15-Mar-2014 Last Archived ISR Date 29-Oct-2013 Effectiveness Date 03-Jan-2008 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to (i) enhance the stability and development of the financial sector; and (ii) strengthen thefinancial secto❒ s underlying market infrastructure. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost Assistance to CBK 1.67 Assistance to AMIK 0.24 Assistance to KBA 0.20 Establishment of a RTGS 1.87 Provision of seed funding to the DIFK 4.00 Public Disclosure Copy Establishment of a BCC 0.85 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status Overview Page 1 of 6 The World Bank Report No: ISR13718 The project has six components: 1) strengthening the Central Bank of Kosovo’s institutional capacity and the regulatory and supervisory framework for banks and non-banks (1.67m); 2) strengthening the microfinance industry to achieve sustainability and expand outreach (0.24m); 3) strengthening the capacity of the Kosovo Banker’s Association to provide adequate training to local banks (0.22m); 4) establishment of a Real Time Gross Settlement System (RTGS) in Kosovo (US$1.87m); 5) establishment of a Business Continuity Center (BCC) in Kosovo (US$0.85m); and 6) provision of seed funding to the DIFK (US$4m). Public Disclosure Copy Progress in implementing the project and achieving the project development objective is satisfactory. Components 1, 2, 3 and 6 are almost fully disbursed, with any remaining activities expected to be completed in the near-term. There have been delays related to components 4 (RTGS) and component 5 (BCC). The RTGS component was primarily delayed due to procurement issues and the BCC component was delayed due to issues related to ownership of the building in Prizren that had been chosen as the site of the BCC. Both of these issues have now been resolved and progress in these two components is now satisfactory. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Status of updated legal and regulatory Text Value Non existent Achieved Achieved framework for banks and NBFIs and capacity Date 01-Jan-2008 11-Feb-2014 30-Jun-2014 building in the financial sector Comments Status of operationalization of RTGS Text Value Non existent Non existent Achieved Date 14-Jun-2011 11-Feb-2014 30-Apr-2014 Comments Status of establishment of a fully operational Text Value Non existent Non existent Achieved Business Continuity Center (BCC) Date 14-Jun-2011 11-Feb-2014 30-Apr-2014 Comments Status of establishment of the DIFK Text Value Non existent Operational Operational Date 14-Jun-2011 11-Feb-2014 30-Jun-2014 Comments Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Conponent 1 - Number of missing and/or Number Value 0.00 0.00 0.00 outdated regulations and directives drafted for Date 14-Jun-2011 11-Feb-2014 30-Jun-2014 banks and NBFIs new laws, which have been Comments 100% achieved passed recently or to be passed over the life of the project Page 2 of 6 The World Bank Report No: ISR13718 Component 1 - Automated database for off-site Text Value Off-site supervision database Off-site supervision database Off-site supervision acquired and implemented is non existent is non-existent database for monitoring and analysis Public Disclosure Copy used in day to day work/supervision database Date 14-Jun-2011 11-Feb-2014 31-Dec-2014 Comments Component 1 - Percentage of CBK staff trained Percentage Value 0.00 0.00 100.00 in using analytical tool and regarding new Date 14-Jun-2011 11-Feb-2014 31-Dec-2014 regulations Comments Component 1 - Number of training sessions to Number Value 0.00 19.00 2.00 MFIs in transforming into deposit taking Date 01-Jan-2008 11-Feb-2013 30-Jun-2014 institutions and to other MFIs Comments Component 1 - Number of training sessions to Number Value 0.00 19.00 2.00 bank officers and KBA staff on banking sector Date 01-Jan-2008 07-Feb-2014 30-Jun-2014 topics Comments Component 2 - Status of operational integration Text Value Non existent Non existent Achieved of the RTGS system with the existing Date 14-Jun-2011 07-Feb-2014 30-Jun-2014 Electronic Interbank Clearing System (EICS) Comments Component 2 - Status of operational integration Text Value Non existent Non existent Achieved of the RTGS system with the Central Securities Date 14-Jun-2011 11-Feb-2014 30-Jun-2014 Depositary (CSD) Comments Percentage of transactions in GoK and CBK Percentage Value 0.00 0.00 100.00 securities settled in the RTGS system in Date 14-Jun-2011 11-Feb-2014 30-Jun-2014 conformity with the principles of Delivery Comments Not measurable until versus Payment (DvP) implementation of RTGS is Public Disclosure Copy completed. Component 2 - Percentage of payments settled Percentage Value 0.00 0.00 95.00 immediately or with a short delay (<15 minutes) Date 14-Jun-2011 11-Feb-2014 30-Jun-2014 Comments Not measurable without implementation of RTGS Component 3 - Status of completion of Text Value Non existent Non existent Achieved refurbishment of the BCC facility Date 14-Jun-2011 11-Feb-2014 30-Jun-2014 Comments Page 3 of 6 The World Bank Report No: ISR13718 Component 3 - Percentage of failover from the Percentage Value 0.00 CBK's primary processing site to BCC, and Date 14-Jun-2011 11-Feb-2014 30-Jun-2014 restoration back to the primary site, Comments Since the BCC is not successfuly demonstrated for all CBK's critical Public Disclosure Copy systems operational, this indicator is not yet relevant and cannot be measured. Component 6- Contributed amount from GoK Amount(USD) Value 0.00 3.30 3.30 Date 14-Jun-2011 01-Oct-2013 30-Jun-2014 Comments GoK contribution transfered Component 6 Premiums received from Text Value No Yes Yes member banks Date 14-Jun-2011 11-Feb-2014 30-Jun-2014 Comments as of Q4 2013 Return on Assets/Equity Percentage Value 10.90 100.00 Date 01-Jan-2008 11-Feb-2014 30-Jun-2014 Comments Q4 2013 This for monitoring only as core indicators no end value needed Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Outstanding Microfinance Loan Portfolio Amount(USD) Value 1057520000.00 100.00 Date 01-Jan-2008 11-Feb-2014 30-Jun-2014 Comments Data as of 3Q 2013 This for monitoring only as Exchange rate EUR/USD - core indicators no end value 1.36/ amount in Euro = needed 1,442,447,000. Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Public Disclosure Copy Supplemental Volume of Bank Support: Institutional Amount(USD) Value 0.00 240112.23 240000.00 Development - Microfinance Date 01-Jan-2008 11-Feb-2014 30-Jun-2014 Comments EUR 93146 (accumulated) - Assistance to AMIK (PAD, Exchange rate EUR/USD = P.44) 1.3363 % active loans to women - Microfinance Percentage Value 40.00 1.00 Date 01-Jan-2008 11-Feb-2014 30-Jun-2014 Page 4 of 6 The World Bank Report No: ISR13718 Comments Data as of Q3 2013. This for monitoring only as core indicators no end value needed Public Disclosure Copy Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Date 01-Jan-2008 11-Feb-2014 30-Jun-2014 Breakdown Comments Portfolio at Risk - Microfinance Percentage Value 7.00 1.00 Date 11-Feb-2014 30-Jun-2014 Comments on average among the 17 This for monitoring only as MFIs served. core indicators no end value needed Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental No of active loan accounts -Microfinance Number Value 94000.00 1.00 Date 01-Jan-2008 11-Feb-2014 30-Jun-2014 Comments Data as of 3Q 2013. This for monitoring only as core indicators no end value needed Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Data on Financial Performance (as of 18-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P108080 IDA-50060 Effective 14-Jun-2011 03-Aug-2011 25-Jan-2012 30-Jun-2014 30-Jun-2014 Public Disclosure Copy P108080 IDA-H3410 Effective 13-Dec-2007 14-Dec-2007 03-Jan-2008 30-Jun-2010 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P108080 IDA-50060 Effective XDR 4.30 4.30 0.00 2.51 1.79 58.00 P108080 IDA-H3410 Effective XDR 1.30 1.30 0.00 0.87 0.43 67.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR13718 Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History Level two Approved on 27-Apr-2010 Related Projects P122084-Kosovo, Financial Sector Strengthening and Markets Infrastructure Project - Additional Finance Public Disclosure Copy Page 6 of 6