The World Bank Report No: ISR16130 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: 11 Status: ARCHIVED Archive Date: 18-Sep-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 30-Jun-2015 Last Archived ISR Date 10-Mar-2014 Effectiveness Date 03-Jan-2008 Revised Closing Date 30-Jun-2016 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 Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status Overview Page 1 of 6 The World Bank Report No: ISR16130 The project has been extended for two years and the revised closing date is June 30, 2016. This two year extension will allow for the completion of the three major delayed activities: 1) establishment of a Real Time Gross Settlement System (RTGS); 2) establishment of a Business Continuity Center (BCC); and 3) software for off-site supervision. Significant progress was demonstrated by the Central Bank of Kosovo (CBK) in implementing each of the three activities prior to the approval of the extension by the World Bank. Public Disclosure Copy 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 04-Sep-2014 30-Jun-2016 building in the financial sector Comments Status of operationalization of RTGS Text Value Non existent Non existent Achieved Date 14-Jun-2011 04-Sep-2014 30-Sep-2015 Comments Bids for the first stage procurement process are being evaluated by the CBK committee. Evaluation report is expected to be completed the latest by end of September. Status of establishment of a fully operational Text Value Non existent Non existent Achieved Business Continuity Center (BCC) Date 14-Jun-2011 04-Sep-2014 30-Sep-2015 Comments The evaluation committee has addressed the WB comments on the BCC procurement for refurbishment and submitted the report to the WB for no Public Disclosure Copy objection. Status of establishment of the DIFK Text Value Non existent Operational Operational Date 14-Jun-2011 04-Sep-2014 30-Jun-2016 Comments DIFK is operational. Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR16130 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 04-Sep-2014 30-Jun-2016 Public Disclosure Copy banks and NBFIs new laws, which have been Comments 100% achieved passed recently or to be passed over the life of the project 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 used in day to day work/supervision database Date 14-Jun-2011 04-Sep-2014 01-Mar-2015 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 04-Sep-2014 31-Jan-2015 regulations Comments the analytical tool does not yet exist 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 04-Sep-2014 30-Jun-2014 institutions and to other MFIs Comments Completed 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 04-Sep-2014 30-Jun-2016 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 04-Sep-2014 30-Jun-2015 Electronic Interbank Clearing System (EICS) Comments Component 2 - Status of operational integration Text Value Non existent Non existent Achieved Public Disclosure Copy of the RTGS system with the Central Securities Date 14-Jun-2011 04-Sep-2014 30-Jun-2015 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 04-Sep-2014 30-Sep-2015 conformity with the principles of Delivery Comments Not measurable until versus Payment (DvP) implementation of RTGS is completed. Page 3 of 6 The World Bank Report No: ISR16130 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 04-Sep-2014 30-Sep-2015 Comments Not measurable without Public Disclosure Copy 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 04-Sep-2014 30-Jun-2015 Comments Component 3 - Percentage of failover from the Percentage Value 0.00 CBK's primary processing site to BCC, and Date 14-Jun-2011 04-Sep-2014 30-Sep-2015 restoration back to the primary site, Comments Since the BCC is not successfuly demonstrated for all CBK's critical 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 04-Sep-2014 30-Jun-2016 Comments GoK contribution transfered. Component 6 Premiums received from Text Value No 8,748,905 USD Yes member banks Date 14-Jun-2011 04-Sep-2014 30-Jun-2016 Comments Data as of 2Q 2014 Exchange rate EUR/USD - 1.31/ amount in Euro = 6,652,925. Return on Assets/Equity Percentage Value 19.00 100.00 Date 01-Jan-2008 04-Sep-2014 30-Jun-2016 Comments Q2 2014 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 Public Disclosure Copy Sub Type Supplemental Outstanding Microfinance Loan Portfolio Amount(USD) Value 100170176.00 100.00 Date 01-Jan-2008 04-Sep-2014 30-Jun-2016 Comments Data as of 31 July 2014 This for monitoring only as Exchange rate EUR/USD - core indicators no end value 1.31/ amount in Euro= needed 76,200,000 Page 4 of 6 The World Bank Report No: ISR16130 Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Public Disclosure Copy Volume of Bank Support: Institutional Amount(USD) Value 0.00 240112.23 240000.00 Development - Microfinance Date 01-Jan-2008 04-Sep-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 04-Sep-2014 30-Jun-2016 Comments Data as of Q2 2014. Data This for monitoring only as obtained from AMIK Members core indicators no end value as CBK does not collect this needed. information. Percentage of project-supported institutions Percentage Value 100.00 100.00 that are reporting on this indicator Sub Type Date 01-Jan-2008 04-Sep-2014 30-Jun-2016 Breakdown Comments Portfolio at Risk - Microfinance Percentage Value 5.90 1.00 Date 30-Jun-2014 30-Jun-2016 Comments on average among the 18 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 52720.00 1.00 Date 01-Jan-2008 04-Sep-2014 30-Jun-2016 Comments Data as of 2Q2014. This for monitoring only as Public Disclosure Copy 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 25-Jun-2014) Financial Agreement(s) Key Dates Page 5 of 6 The World Bank Report No: ISR16130 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-2016 P108080 IDA-H3410 Effective 13-Dec-2007 14-Dec-2007 03-Jan-2008 30-Jun-2010 30-Jun-2016 Public Disclosure Copy 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 Key Decisions Regarding Implementation Public Disclosure Copy None Restructuring History Level two Approved on 27-Apr-2010, Level 2 RVP Decision on 18-Jun-2014 Related Projects P122084-Kosovo, Financial Sector Strengthening and Markets Infrastructure Project - Additional Finance Page 6 of 6