The World Bank Implementation Status & Results Report Access to Longer Term Finance for Micro, Small and Medium Enterprises Project (P159515) Access to Longer Term Finance for Micro, Small and Medium Enterprises Project (P159515) LATIN AMERICA AND CARIBBEAN | Argentina | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 5 | ARCHIVED on 23-Sep-2019 | ISR38001 | Implementing Agencies: Argentine Republic, Banco de Inversión y Comercio Exterior (BICE) Key Dates Key Project Dates Bank Approval Date: 18-Nov-2016 Effectiveness Date: 05-Oct-2018 Planned Mid Term Review Date: 15-Apr-2020 Actual Mid-Term Review Date: Original Closing Date: 30-Nov-2021 Revised Closing Date: 30-Nov-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objectives (PDO) are to improve access to, and strengthen the framework for the provision of, longer term finance for eligible micro, small and medium enterprises. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Line of credit:(Cost $44.50 M) Institutional capacity building of BICE, financial infrastructure reforms, credit guarantee fund, and capacity building for MSMEs:(Cost $4.55 M) Project management:(Cost $0.82 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Satisfactory ►Moderately Unsatisfactory Overall Implementation Progress (IP) ►Moderately Satisfactory ►Moderately Unsatisfactory Overall Risk Rating ►Substantial ►High Implementation Status and Key Decisions 9/23/2019 Page 1 of 5 The World Bank Implementation Status & Results Report Access to Longer Term Finance for Micro, Small and Medium Enterprises Project (P159515) The economic volatility has limited MSME demand for loans. The first loan as approved in May 2019 for about USD 200,000. In addition, BICE, the implementing entity, is working with Participating Financial Intermediaries to adjust the credit line according to the current financing needs, including for working capital financing. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance ►Moderate ►Moderate ►High Macroeconomic ►Substantial ►High ►High Sector Strategies and Policies ►Moderate ►Moderate ►Moderate Technical Design of Project or Program ►Moderate ►Substantial ►Substantial Institutional Capacity for Implementation and Sustainability ►Moderate ►Moderate ►Substantial Fiduciary ►Moderate ►Moderate ►Moderate Environment and Social ►Substantial ►Substantial ►Substantial Stakeholders ►Moderate ►Moderate ►Moderate Other -- -- -- Overall ►Substantial ►Substantial ►High Results PDO Indicators by Objectives / Outcomes Improve access to, and strengthen the framework for the provision of, longer term finance for MSMEs IN00727251 ►Ratio of the average portfolio maturity of MSME sub-loans under the project, over the average portfolio maturity of PFI’s MSME lending portfolio not financed under the project. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 >1 Date 28-Feb-2017 31-Dec-2018 10-Sep-2019 30-Nov-2021 IN00727252 ►BICE has a dedicated unit for risk management of second tier operations, with improved capacity for quantitative and qualitative analysis of risks (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes 9/23/2019 Page 2 of 5 The World Bank Implementation Status & Results Report Access to Longer Term Finance for Micro, Small and Medium Enterprises Project (P159515) Date 21-Nov-2016 31-Dec-2018 10-Sep-2019 30-Nov-2021 IN00727253 ►New business development service platform operated by SEPYME developed and functioning (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 21-Nov-2016 31-Dec-2018 10-Sep-2019 30-Nov-2021 Intermediate Results Indicators by Components Component 1: Line of credit IN00727254 ►Volume of Bank Support: Lines of Credit - SME (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 200,000.00 51,000,000.00 Date 28-Feb-2017 31-Dec-2018 10-Sep-2019 30-Nov-2021 IN00727257 ►Number of sub-loans provided by selected PFIs to MSMEs with Project funds (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 154.00 Date 28-Feb-2017 31-Dec-2018 10-Sep-2019 30-Nov-2021 IN00727260 ►Percentage of MSME beneficiaries that feel project sub-finance reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 28-Feb-2017 31-Dec-2018 10-Sep-2019 30-Nov-2021 Component 2: Institutional capacity building, financial infrastructure reforms, MSME support IN00727255 ►Draft proposal for reform of the legal, regulatory, and institutional framework for secured transactions submitted to the Ministry of Treasury (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 28-Feb-2017 31-Dec-2018 10-Sep-2019 30-Nov-2021 IN00727256 9/23/2019 Page 3 of 5 The World Bank Implementation Status & Results Report Access to Longer Term Finance for Micro, Small and Medium Enterprises Project (P159515) ►Credit guarantee fund (FOGAR) is operationalized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 28-Feb-2017 31-Dec-2018 10-Sep-2019 30-Nov-2021 IN00727258 ►Draft Insolvency law amendments, and related regulations, submitted to the Ministry of Treasury (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 28-Feb-2017 31-Dec-2018 10-Sep-2019 30-Nov-2021 IN00727259 ►Central Balance Sheet Platform is functional (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 06-Sep-2018 31-Dec-2018 10-Sep-2019 30-Nov-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159515 IBRD-86590 Effective USD 50.00 50.00 0.00 28.13 21.88 56% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P159515 IBRD-86590 Effective 18-Nov-2016 20-Apr-2018 05-Oct-2018 30-Nov-2021 30-Nov-2021 Cumulative Disbursements 9/23/2019 Page 4 of 5 The World Bank Implementation Status & Results Report Access to Longer Term Finance for Micro, Small and Medium Enterprises Project (P159515) Restructuring History Level 2 Approved on 23-Jan-2018 ,Level 2 Approved on 04-Oct-2018 Related Project(s) There are no related projects. 9/23/2019 Page 5 of 5