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 | Finance & Markets Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2014 | Seq No: 5 | ARCHIVED on 29-Sep-2016 | ISR24467 | Implementing Agencies: Central Bank of Jordan Key Dates Key Project Dates Bank Approval Date:24-Jan-2014 Effectiveness Date:04-Mar-2014 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 Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Implementation Status and Key Decisions The project comprises of three main components: (i) strengthening credit guarantees schemes; (ii) enhancing the consumer protection mechanism; and (iii) developing the regulatory and institutional framework for micro finance institutions and NBFIs. Progress under project implementation includes: 1. Technical assistance to JLGC to strengthen its core internal capabilities. In this respect, JLGC has recruited under the grant, a risk management resident advisor to implement and manage the risk framework transformation and reform the payment rules. The resident advisor trained JLGC staff, and improved their technical know-how for changes to be sustained. The risk management strategy developed 9/29/2016 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) by the resident advisor was endorsed by the Board and is currently being implemented. The charter for risk management and the annual action plan for risk management policy implementation was also developed and was submitted for board approval late July. JLGC is currently working on recruiting a product and business development advisor to help launch new products and revamp the existing ones, as well as oversee execution of strategic enablers. 2. Technical assistance has been provided to CBJ to establish the Consumer protection unit. This included (i) developing a proposal for the setup, responsibilities and composition of the new consumer protection department, its cooperation with other units of CBJ and other stakeholders, as well as key requirements for the manager of the new department; (ii) assessing the legal and regulatory framework for protecting consumers of the services provided by all types of institutions regulated by the CBJ, including banks, non-banks and payment service providers. Next steps include hiring the head of consumer protection unit, and implementing the business plan to fully operationalize the consumer protection unit. 3. The project is supporting the CBJ in gathering all available data about the NBFIs that are engaged in financial services, as well as those that operate without any specialized regulation or supervision. This will include a comprehensive market study, technical assistance in drafting any needed regulation, and building the capacity of the staff in charge of supervising these institutions. The TOR for the hiring of a firm that will be conducting these activities was advertised early September. 4. In February 2016, the Cabinet approved transferring the regulatory function of the Insurance sector to CBJ. The decision stipulates transferring the regulatory function to the CBJ within a year, while the task of updating the regulatory framework for the insurance sector is to be completed within two years. To support this transition, an insurance resident advisor was appointed under the project in May 2016 to provide necessary technical assistance to ensure transferring the regulatory function to the CBJ. This includes (i) preparing the legal requirements needed to transfer Insurance under CBJ supervision; (ii) developing the legal and regulatory framework; and (iii) developing a proposal for the setup, responsibilities and composition of the Insurance department, its cooperation with other units of CBJ and other stakeholders, as well as key requirements for the manager of the new department. 5. Developing financial literacy programs through public awareness campaigns and media programs. Significant progress has been done under this component as the CBJ has implemented its contract with Injaz[1], which focuses on the incorporation of the financial literacy programs within school curricula across Jordan. Injaz in consultation with the Ministry of Education and the CBJ has incorporated financial education in the curriculum of 6614 schools. Overall, the curricula have been offered to 150,153 students, of which 49.8 percent are females. Administrative coordinators from respective ministries as well as teachers were trained alike, amounting to 66 coordinators and 2307 teachers, in addition to the 17 coordinators and 33 supervisors that are working in UNRWA schools. By the end of this year the program aims to graduate 338,874 pupils from grade seven, eight and eleven. [1] INJAZ is an independent, nonprofit Jordanian organization. It is a solution provider linking the public, private, and civil society sectors to bridge the skills gap between the educational system and the changing needs of the labor market. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  Low  Low  Low 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 76932.00 80250.00 1500.00 Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2018 9/29/2016 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) PHINDPDOTBL Number of SME loans guaranteed by JLGC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3000.00 4105.00 7675.00 4500.00 Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2014 Comments This figure actually reflects Number of microfinance Loans as reported by Tanmeyeh. Though in April 10th 2016, the CBJ issued the Instructions of Licensing and Visibility for Microfinance Companies No. (62/2016) which set the registration and licensing requirements for MFIs in accordance with the Microfinance Companies Regulation No. (5/2015) and the detailed requirement for current MFIs to comply with the new rules, yet the grace period will end in June 2017. 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 0.00 417.00 600.00 Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2018 Overall Comments Intermediate Results Indicators 9/29/2016 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) PHINDIRITBL Value of guarantees issued (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 49000000.00 676000000.00 72000000.00 69000000.00 Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2018 Comments Correction : Figures are in JD Actual value for Dec 2015 is 60,000,000 JOD PHINDIRITBL Guaranteed loans by JLGC to women-owned SMEs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 7.00 9.00 11.00 Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2018 PHINDIRITBL Consumer Protection Unit at CBJ fully staffed and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2018 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 0.00 0.00 5.00 Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2018 9/29/2016 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) PHINDIRITBL Number of public awareness campaigns and financial literacy programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2018 PHINDIRITBL Microfinance Division at CBJ fully staffed and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 31-Jan-2014 10-Dec-2015 31-Aug-2016 31-Aug-2018 Overall Comments 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 1.20 1.80 40% 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 9/29/2016 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening the Regulatory and Institutional Framework for MSME Deve (P147875) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/29/2016 Page 6 of 6 Public Disclosure Copy