The World Bank Report No: ISR15349 Implementation Status & Results Turkey Second Turkey Access to Finance for Small and Medium Enterprises Project (P118308) Public Disclosure Copy Operation Name: Second Turkey Access to Finance for Small and Medium Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 05-Jul-2014 Enterprises Project (P118308) Country: Turkey Approval FY: 2010 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Key Dates Board Approval Date 15-Jun-2010 Original Closing Date 30-Sep-2014 Planned Mid Term Review Date Last Archived ISR Date 28-Oct-2013 Effectiveness Date 12-Aug-2010 Revised Closing Date 30-Sep-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project's main development objective is to broaden and deepen the access of Turkish small and medium enterprises to medium- and long-term finance, with a view to ultimately contributing to an expansion of productive activities and job creation. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Kalkinma Bank : A US$ 100 million wholesale credit line to Kalkinma Bank to be intermediated 100.00 through private retail banks/leasing Ziraat Bank: A US$200 million credit line to be intermediated through ZiraatBank as a retail bank 200.00 directly to SMEs. Vakif Bank: A US$200 million credit line to be intermediated through VakıfBank as a retail bank 200.00 directly to SMEs. Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Low Moderate Implementation Status Overview Implementation pace has slowed down, with overall disbursements reaching 78.4 percent of the total Loan compared to 76.7 in June 2013. As of June 2014, 78.4 percent of the loan Page 1 of 7 The World Bank Report No: ISR15349 (US $391.9 million) has been disbursed to beneficiary SMEs , with Ziraat accounting for US$126.4 million; Vakif for US $165.5 million; and Kalkinma (through its intermediaries, Deniz Bank, Garanti Bank and Garanti Leasing) for US $100 million. Kalkinma Bank had completed disbursement of its portion (US $ 100 million) by September 2012. 547 SMEs have been financed under the project, with most companies coming from the manufacturing sector. Maturities vary from 24 to 120 months, with an average of 51 months. Sub-loans are being extended both in foreign currency and Turkish Lira. The proceeds for a large proportion of the sub-loans (68 percent) are being used for working capital purposes. Disbursements to Public Disclosure Copy underserved areas are still relatively low, with about 10.6 percent of total sub-loans going to those areas (compared to a project requirement of 25 percent) Locations Country First Administrative Division Location Planned Actual Turkey Not Entered Yozgat Turkey Not Entered Van Turkey Not Entered Sanliurfa Turkey Not Entered Tunceli Turkey Not Entered Sivas Turkey Not Entered Siirt Turkey Not Entered Nigde Turkey Not Entered Nevsehir Turkey Not Entered Mus Turkey Not Entered Mardin Turkey Not Entered Malatya Turkey Not Entered Kirsehir Turkey Not Entered Kahramanmaras Turkey Not Entered Hakkari Public Disclosure Copy Turkey Not Entered Erzurum Turkey Not Entered Erzincan Turkey Not Entered Elazig Turkey Not Entered Diyarbakir Turkey Not Entered Bitlis Turkey Not Entered Bingol Page 2 of 7 The World Bank Report No: ISR15349 Country First Administrative Division Location Planned Actual Turkey Not Entered Agri Public Disclosure Copy Turkey Not Entered Adiyaman Turkey Not Entered Osmaniye Turkey Not Entered Igdir Turkey Not Entered Aksaray Turkey Not Entered Batman Turkey Not Entered Karaman Turkey Not Entered Kirikkale Turkey Not Entered Sirnak Turkey Not Entered Kilis Turkey Not Entered Zonguldak Turkey Not Entered Trabzon Turkey Not Entered Tokat Turkey Not Entered Sinop Turkey Not Entered Samsun Turkey Not Entered Rize Turkey Not Entered Ordu Turkey Not Entered Kastamonu Public Disclosure Copy Turkey Not Entered Kars Turkey Not Entered Gumushane Turkey Not Entered Giresun Turkey Not Entered Corum Turkey Not Entered Cankiri Turkey Not Entered Artvin Turkey Not Entered Amasya Page 3 of 7 The World Bank Report No: ISR15349 Turkey Not Entered Bartin Turkey Not Entered Karabuk Public Disclosure Copy Turkey Not Entered Ardahan Turkey Not Entered Bayburt Turkey Not Entered Bozcaada Turkey Not Entered Gokceada Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of Participating Financial Institutions Number Value 0.00 6.00 5.00 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments Quality of Project Financed Portfolio (NPL Percentage Value 0.00 1.98 Ratio) Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments Target is <7 percent as indicated in the PAD Share of Finance Provided to Underserved Percentage Value 0.00 13.39 25.00 Regions Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments Increase in Sale in Beneficiary SMEs Amount(USD) Value 0.00 793658368.00 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments Target is >0 as indicated in PAD Public Disclosure Copy Increase in Employment in Beneficiary SMEs Number Value 0.00 8150.00 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments Target is >0 as indicated in PAD Number of SME Beneficiaries Financed Under Number Value 0.00 547.00 200.00 the Project Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments Intermediate Results Indicators Page 4 of 7 The World Bank Report No: ISR15349 Indicator Name Core Unit of Measure Baseline Current End Target Return on Assets/Equity Percentage Value 1.98 1.20 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Public Disclosure Copy Comments For Vakif Bank For Vakif Bank (December For Vakif Bank - (n/a) 2014) Return on Assets/Equity Percentage Value 3.10 1.80 Date 06-Jul-2010 20-Jun-2013 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank (December For Ziraat Bank - (n/a) 2014) Return on Assets/Equity Percentage Value 2.00 1.32 Date 06-Jul-2010 20-Jun-2013 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank - (n/a) (DEcember 2014) Portfolio at Risk - SME Percentage Value 6.10 3.90 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Vakif Bank For Vakif Bank (December For Vakif Bank 2014) Portfolio at Risk - SME Percentage Value 2.30 2.20 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank (December For Ziraat Bank - (n/a) 2014) Portfolio at Risk - SME Percentage Value 10.80 3.81 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank - n/a (DEcember 2014) Outstanding SME Loan Portfolio Amount(USD) Value 2800000000.00 10769000000.00 3000000000.00 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Vakif Bank For Vakif Bank 2014 Q1 For Vakif Bank Public Disclosure Copy Outstanding SME Loan Portfolio Amount(USD) Value 2358000000.00 16247330796.00 2558000000.00 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank 2014 Q1 For Ziraat Bank Outstanding SME Loan Portfolio Amount(USD) Value 316000000.00 774000000.00 400000000.00 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank 2014 Q1 For Kalkinma Bank No of active loan accounts -SME Number Value 40000.00 222509.00 40075.00 Page 5 of 7 The World Bank Report No: ISR15349 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Vakif Bank For Vakif Bank 2014 Q1 For Vakif Bank No of active loan accounts -SME Number Value 92119.00 1816485.00 92195.00 Public Disclosure Copy Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank 2014 Q1 For Ziraat Bank No of active loan accounts -SME Number Value 530.00 180.00 580.00 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Kalkinma Bank For Kalkinma Bank 2014 Q1 For Kalkinma Bank PFI Performance (Compliance with Prudential Text Value (a)compliant, (b)compliant (a)compliant, (b)compliant, Norms) / (a)Garanti Bank, (b)Deniz Bank Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments No Baseline Garanti Leasing was included in the project as a PFI and it is in compliance with prudential norms as well Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 165.50 199.50 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Vakif Bank For Vakif Bank For Vakif Bank Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 126.40 199.50 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments For Ziraat Bank For Ziraat Bank For Ziraat Bank Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 100.00 99.75 Date 01-Jun-2014 Comments For Kalkinma Bank For Kalkinma Bank For Kalkinma Bank Volume of Bank Support (%) Percentage Value 0.00 78.40 100.00 Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments Borrower Performance (Compliance with Text Value (a)compliant, (b)compliant, (c) (a)compliant, (b)compliant, (c) Public Disclosure Copy Prudential Norms) / (a)Ziraat Bank, (b)Vakif compliant compliant Bank, (c)Kalkinma Bank Date 06-Jul-2010 01-Jun-2014 30-Sep-2014 Comments No Baseline Data on Financial Performance (as of 05-Aug-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P118308 IBRD-79020 Effective 15-Jun-2010 06-Jul-2010 19-Oct-2010 30-Sep-2014 30-Sep-2014 Page 6 of 7 The World Bank Report No: ISR15349 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P118308 IBRD-79030 Effective 15-Jun-2010 06-Jul-2010 12-Aug-2010 30-Sep-2014 30-Sep-2014 P118308 IBRD-79040 Effective 15-Jun-2010 06-Jul-2010 12-Aug-2010 30-Sep-2014 30-Sep-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P118308 IBRD-79020 Effective USD 100.00 100.00 0.00 100.00 0.00 100.00 P118308 IBRD-79030 Effective USD 200.00 200.00 0.00 161.28 38.72 81.00 P118308 IBRD-79040 Effective USD 200.00 200.00 0.00 200.00 0.00 100.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 7 of 7