Public Disclosure Copy The World Bank Implementation Status & Results Report Deposit Insurance Strengthening Project (P146248) Deposit Insurance Strengthening Project (P146248) EUROPE AND CENTRAL ASIA | Serbia | Finance & Markets Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 5 | ARCHIVED on 12-Sep-2016 | ISR24693 | Implementing Agencies: 111Ministry of Finance Key Dates Key Project Dates Bank Approval Date:25-Feb-2014 Effectiveness Date:26-Nov-2014 Planned Mid Term Review Date:30-Nov-2015 Actual Mid-Term Review Date:30-Nov-2015 Original Closing Date:30-Jun-2016 Revised Closing Date:31-May-2017 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 Objective? No PHRPDODEL Components Name Strengthen the financial capacity of the DIA:(Cost $198.50 M) Strengthen the institutional capacity of the DIA:(Cost $1.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 9/12/2016 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Deposit Insurance Strengthening Project (P146248) The Project Development Objective is to strengthen the financial and institutional capacity of the Deposit Insurance Agency (DIA), 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. The project has two components: 1) Strengthen the financial capacity of the DIA (EUR144.23 million at project approval) through financing the DIF based on the achievement of several DLIs; and 2) Strengthen the institutional capacity of the DIA (EUR 0.71 million at project approval) through financing technical assistance to the DIA and the Ministry of Finance. The first component that capitalized the Deposit Insurance Fund (DIF) utilizing disbursement linked indicators has fully disbursed. However, the second component that finances technical assistance has been delayed, as the effectiveness of the project was initially delayed by 9 months due to Parliamentary procedures that took longer than expected. Considering that the project was expected to close only 30 months after Board approval, this delay was significant. This delay did not impact the disbursement of component 1 related to financing the DIF or result in any delays in achieving the DLIs. However, the delay adversely affected the disbursement of the TA component. For this reason, the borrower has requested an extension of the closing date in order to enable the implementation of technical assistance to strengthen the institutional capacity of the DIA and to fully meet the PDO. The borrower also requested that EUR 1 million be transferred from component 1 to component 2 in order to provide additional technical assistance to enable a stronger overall impact on the institutional capacity of the DIA. An 11 month extension and reallocation of EUR 1 million from component 1 to component 2 was approved in May, 2016, and the closing date has been revised from end-June, 2016 to end-May, 2017. With this 11-month extension and the additional technical assistance, the project team expects that the PDO will be fully achieved by the time that the project closes in May, 2017. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Substantial  Moderate Sector Strategies and Policies  --  Substantial  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Cumulative inflows into the Deposit Insurance Fund equivalent to 2.5 percent insured deposits (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.50 2.50 2.50 9/12/2016 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Deposit Insurance Strengthening Project (P146248) Date 31-Dec-2013 31-May-2015 30-Jun-2016 30-Jun-2016 PHINDPDOTBL  DIA performing its legally mandated technical functions in any future bank failures in which DIF resources are utilized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 31-Dec-2013 31-May-2015 30-Jun-2016 30-Jun-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Premium Rate (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.40 1.50 0.60 0.40 Date 31-Dec-2013 31-May-2015 30-Jun-2016 30-Jun-2016 PHINDIRITBL  Stand-by funding available for DIF (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value EUR 0 EUR 200 EUR 0 EUR 0 Date 31-Dec-2013 31-Dec-2014 30-Jun-2016 30-Jun-2016 9/12/2016 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Deposit Insurance Strengthening Project (P146248) PHINDIRITBL  Number of Independent Board Members (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 31-Dec-2013 31-May-2015 30-Jun-2016 30-Jun-2016 PHINDIRITBL  Regular government financial stability committee meetings (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 8.00 8.00 Date 31-Dec-2013 31-May-2016 30-Jun-2016 30-Jun-2016 PHINDIRITBL  Sharing of NBS risk information on problematic banks with DIA (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 31-Dec-2013 31-May-2015 30-Jun-2016 30-Jun-2016 PHINDIRITBL  Sharing of NBS Supervision Conclusions on Problematic Banks with DIA (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 31-Dec-2013 31-May-2015 30-Jun-2016 30-Jun-2016 9/12/2016 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Deposit Insurance Strengthening Project (P146248) PHINDIRITBL  Cumulative value recovered from bank bankruptcies since February 1, 2014 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value EUR 0m -- EUR 110m EUR 110m Date 31-Dec-2013 -- 30-Jun-2016 30-Jun-2016 PHINDIRITBL  Information Collected by the MoF on State Owned Banks. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 31-Dec-2013 31-May-2015 30-Jun-2016 30-Jun-2016 Overall Comments All of the results indicators have been met, as the original project closing date was June 30, 2016. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P146248 IBRD-83400 Effective USD 200.00 200.00 0.00 171.94 1.41 86% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146248 IBRD-83400 Effective 25-Feb-2014 10-Jul-2014 26-Nov-2014 30-Jun-2016 31-May-2017 Cumulative Disbursements 9/12/2016 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Deposit Insurance Strengthening Project (P146248) Restructuring History Level 2 Approved on 20-Apr-2016 Related Project(s) There are no related projects. 9/12/2016 Page 6 of 6 Public Disclosure Copy