The World Bank Report No: ISR7310 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: 7 Status: ARCHIVED Archive Date: 14-Nov-2011 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) Key Dates Board Approval Date 13-Dec-2007 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date 01-Jan-2013 Last Archived ISR Date 14-Nov-2011 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 the financial 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 Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview Page 1 of 6 The World Bank Report No: ISR7310 The project has been restructured and extended after the approval of the additional financing on June 14, 2011 which was signed between the Ministry of Finance of Kosovo on August 3rd, 2011. After Parliament approval the AF became effective on Jan 25th, 2012. As part of the additional financing, the project’s objectives have been broadened to enhance the financial sector market infrastructure and make the financial sector more efficient and resilient. Three new components were added: (a) Component 4 - Establishing a Real Time Gross Settlement (RTGS), (b) Component 5 - Establishing a Business Continuity Center (BCC), (c) Component 6 - Providing seed funding for the Deposit Insurance Fund of Kosovo Public Disclosure Copy (DIFK) The conditions related to funding for the Deposit Insurance Fund have been met. However, overall disbursement remains slow, due to complex procurements the implementation of components, such as Business Continuity Center and Real Time Gross Settlement System. challenges that have been compounded by the absence of the head of project management team. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Status of establishment of the DIFK Text Value Non existent DIFK operational Operational Date 14-Jun-2011 01-Jun-2012 30-Jun-2014 Comments Status of updated legal and regulatory Text Value Non existent Partially achieved Achieved framework for banks and NBFIs and capacity Date 01-Jan-2008 01-Jun-2012 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 01-Jun-2012 30-Jun-2014 Comments Status of establishment of a fully operational Text Value Non existent Non existent Achieved Business Continuity Center (BCC) Date 14-Jun-2011 01-Jun-2012 30-Jun-2014 Public Disclosure Copy Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component 6 Premiums received from Text Value No yes Yes member banks Date 14-Jun-2011 01-Jun-2012 30-Jun-2014 Comments Page 2 of 6 The World Bank Report No: ISR7310 Component 3 - Status of completion of Text Value Non existent Non existent Achieved refurbishment of the BCC facility Date 14-Jun-2011 01-Jun-2012 30-Jun-2014 Comments Public Disclosure Copy Component 2 - Percentage of payments settled Percentage Value immediately or with a short delay (<15 minutes) Date Comments Component 3 - Percentage of failover from the Percentage Value 0.00 CBK's primary processing site to BCC, and Date 14-Jun-2011 30-Jun-2014 restoration back to the primary site, Comments successfuly demonstrated for all CBK's critical systems Component 1 - Number of training sessions to Number Value 0.00 7.00 2.00 bank officers and KBA staff on banking sector Date 01-Jan-2008 21-Jul-2011 30-Jun-2014 topics Comments Component 1 - Number of training sessions to Number Value 0.00 22.00 2.00 MFIs in transforming into deposit taking Date 01-Jan-2008 21-Jul-2011 30-Jun-2014 institutions and to other MFIs Comments Component 1 - Percentage of CBK staff trained Percentage Value 0.00 100.00 in using analytical tool and regarding new Date 14-Jun-2011 21-Jul-2011 30-Jun-2014 regulations Comments Data will be updated after support mission (August 2011) Conponent 1 - Number of missing and/or Number Value 0.00 0.00 outdated regulations and directives drafted for Date 14-Jun-2011 21-Jul-2011 30-Jun-2014 banks and NBFIs new laws, which have been Comments passed recently or to be passed over the life of the project Percentage of transactions in GoK and CBK Percentage Value 0.00 0.00 100.00 Public Disclosure Copy securities settled in the RTGS system in Date 14-Jun-2011 21-Jul-2011 30-Jun-2014 conformity with the principles of Delivery Comments versus Payment (DvP) Component 2 - Status of operational integration Text Value Non existent Achieved of the RTGS system with the Central Securities Date 14-Jun-2011 30-Jun-2014 Depositary (CSD) Comments additional financing non effective yet Page 3 of 6 The World Bank Report No: ISR7310 Component 2 - Status of operational integration Text Value Non existent Achieved of the RTGS system with the existing Date 14-Jun-2011 21-Jul-2011 30-Jun-2014 Electronic Interbank Clearing System (EICS) Comments additional financing non Public Disclosure Copy effective yet Component 6- Contributed amount from GoK Amount(USD) Value 0.00 3.30 Date 14-Jun-2011 01-Jun-2012 30-Jun-2014 Comments GoK contribution transfered EUR 3.3m No of active loan accounts -Microfinance Number Value 62000.00 1.00 Date 01-Jan-2008 01-Jan-2012 30-Jun-2014 Comments This indicator was added to This for monitoring only as meet the the Bank's reporting core indicators no end value requirements for MSME and needed will not be used to monitor and evaluate the project's performance. Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Portfolio at Risk - Microfinance Percentage Value 4.50 1.00 Date 01-Mar-2012 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 % active loans to women - Microfinance Percentage Value 38.00 1.00 Date 01-Jan-2008 01-May-2012 30-Jun-2014 Public Disclosure Copy Comments This indicator was added to This for monitoring only as meet the the Bank's reporting core indicators no end value requirements for MSME and needed will not be used to monitor and evaluate the project's performance. Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Date 01-Jan-2008 31-May-2011 30-Jun-2014 Breakdown Comments Page 4 of 6 The World Bank Report No: ISR7310 Volume of Bank Support: Institutional Amount(USD) Value 0.00 165000.00 240000.00 Development - Microfinance Date 01-Jan-2008 01-Dec-2011 30-Jun-2014 Comments EUR 93146 (accumulated) - Assistance to AMIK (PAD, Public Disclosure Copy Exchange rate EUR/USD = P.44) 1.3362 Outstanding Microfinance Loan Portfolio Amount(USD) Value 130000000.00 100.00 Date 01-Jan-2008 01-Mar-2012 30-Jun-2014 Comments Exchange rate EUR/USD - This for monitoring only as 1.25/ amount in Euro = core indicators no end value 109,149. This indicator was needed added to meet the the Bank's reporting requirementsforMSME and will not be used to monitor and evaluate the project's performance. Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Return on Assets/Equity Percentage Value 10.30 1.00 Date 01-Jan-2008 01-Jun-2011 30-Jun-2014 Comments 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 Component 1 - Automated database for off-site Text Value Off-site supervision database Acquired and implemented supervision acquired and implemented is non existent automated off-site supervision database Public Disclosure Copy Date 14-Jun-2011 01-Jun-2012 30-Jun-2014 Comments CQBS procurement selection process is ongoing. Data on Financial Performance (as of 04-Jun-2012) 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 Page 5 of 6 The World Bank Report No: ISR7310 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P108080 IDA-H3410 Effective 13-Dec-2007 14-Dec-2007 03-Jan-2008 30-Jun-2010 30-Jun-2014 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P108080 IDA-50060 Effective XDR 4.30 4.30 0.00 0.00 4.30 0.00 P108080 IDA-H3410 Effective XDR 1.30 1.30 0.00 0.72 0.58 55.00 Disbursement Graph Key Decisions Regarding Implementation Due to complex procurements the implementation of components, such as Business Continuity Center and Real Time Gross Settlement System, has suffered from delays. Public Disclosure Copy Restructuring History Level two Approved on 27-Apr-2010 Related Projects P122084-Kosovo, Financial Sector Strengthening and Markets Infrastructure Project - Additional Finance Page 6 of 6