Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) MIDDLE EAST AND NORTH AFRICA | Jordan | Financial Inclusion Practice Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2014 | Seq No: 2 | ARCHIVED on 05-Dec-2014 | ISR17110 | Implementing Agencies: Central Bank of Jordan Key Dates Key Project Dates Board Approval date:04-Feb-2014 Effectiveness Date:04-Mar-2014 Planned Mid Term Review Date:-- Actual Mid-Term Review Date:-- Original Closing Date:31-Aug-2018 Revised Closing Date:31-Aug-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) would be to enhance financial services and products and to strengthen financial protection mechanism for MSMEs, while enhancing governance. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name (i) strengthening credit guarantees schemes:(Cost $3.00 M) ii) enhancing the consumer protection mechanism (iii) developing the regulatory a nd institutional framework for micro finance institutions and NBFIs Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Implementation Status and Key Decisions 12/5/2014 Page 1 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) 1. The project complements the line of credit, ensuring stronger impact on the ground, through strengthening the regulatory institutional framework and governance structure. 2. The project implementation is in track since it became effective on March 15, 2014. Implementation arrangements of the project have been agreed on and finalized with the CBJ, specifically with regard to confirming Project Management Unit (PMU) readiness to commence procurement, and financial management activities. Component I: Strengthening Credit Guarantee Scheme. Progress made especially with regard to strengthening the credit guarantee schemes, which is led by JLGC, evident in the issuance of a total value of guarantees accounting to JD 17.6 million; and guaranteed 428 SME loans. Component II: Enhancing the Consumer Protection Mechanism 3. CBJ to commence preparation for the establishment of the consumer protection unit, finalize the TORs for the consultants, and prepare the list of IT and office equipment. 4. CBJ established two Steering Committees on May 26, 2014 to design a national program for financial education at schools (first phase), and to raise financial awareness in the community (second phase). The steering committee is headed by the Governor of CBJ, and includes the Secretary General of the Ministry of Planning and International Cooperation, the Secretary General of the Ministry of Education, the Chairman of Abdulhameed Shoman Foundation, as well as the Chairman of Association of Banks in Jordan. While the technical committee, includes several members such as; the Executive Manager of Financial Stability at CBJ, the Executive Manager of school curriculum development at the Ministry of Education, the Executive Manager of INJAZ, and the Manager of Al Hussein Fund for Excellence. 5. A twining arrangement has been made between Jordan and Malaysia and Singapore, which includes study tours. This would enable CBJ staff to gain international expertise and cross country experiences from other Central Banks’ success stories. Component III: Supporting the Development of the Institutional Framework for Microfinance and Non-bank Financial Institutions (NBFIs) Supervision 6. The Microfinance Regulation was finalized and approved by the Board of CBJ on May 29, 2014 and submitted to the Cabinet of Ministers on June 9, 2014 for final approval. The CBJ is currently finalizing the Action Plan and implementation timeline for the needed instructions to implement and enforce the Microfinance Regulation. 7. The mission agreed with CBJ on the urgent need to start the process of establishing the microfinance unit at CBJ. Results Project Development Objective Indicators PHINDPDOTBL  Number of microfinance loans after bringing the MFIs under the umbrella of CBJ (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 1500.00 Date 31-Jan-2014 -- -- 31-Aug-2018 Comments PHINDPDOTBL  Number of SME loans guaranteed by JLGC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/5/2014 Page 2 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) Value 3000.00 -- -- 4500.00 Date 31-Jan-2014 -- -- 31-Aug-2014 Comments PHINDPDOTBL  Number of complaints resolved to the satisfaction of the consumer by the Consumer Protection Unit at CBJ within [30] days. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 600.00 Date 31-Jan-2014 -- -- 31-Aug-2018 Comments Overall Comments Intermediate Results Indicators PHINDIRITBL  Value of guarantees issued (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 49000000.00 -- -- 69000000.00 Date 31-Jan-2014 -- -- 31-Aug-2018 Comments PHINDIRITBL  Guaranteed loans by JLGC to women-owned SMEs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 -- -- 11.00 Date 31-Jan-2014 -- -- 31-Aug-2018 Comments 12/5/2014 Page 3 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) PHINDIRITBL  Consumer Protection Unit at CBJ fully staffed and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- -- Y Date 31-Jan-2014 -- -- 31-Aug-2018 Comments PHINDIRITBL  Completion of the necessary training programs for the staff in the Consumer Protection Unit (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 5.00 Date 31-Jan-2014 -- -- 31-Aug-2018 Comments PHINDIRITBL  Number of public awareness campaigns and financial literacy programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 3.00 Date 31-Jan-2014 -- -- 31-Aug-2018 Comments PHINDIRITBL  Microfinance Division at CBJ fully staffed and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- -- Y Date 31-Jan-2014 -- -- 31-Aug-2018 Comments Overall Comments 12/5/2014 Page 4 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P147875 TF-16588 Effective USD 3.00 3.00 0.00 0.40 2.60 13% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P147875 TF-16588 Effective 09-Feb-2014 09-Feb-2014 04-Mar-2014 31-Aug-2018 31-Aug-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/5/2014 Page 5 of 5 Public Disclosure Copy