APPENDIX C 222 Appendix C. Financial Sector Data 1. Financial Sector Portfolio Analysis Table C.1. Total and Financial Sector Lending by Levels Overall and Financial Sector Stress, FY09- 10 (US$ millions) GDP Stress category Total Bank commitments by GDP stress FS Lending comm. by GDP stress FS Stress category Total Bank commitments by FS Stress FS Lending commitments by FS stress High 34,580 5,371 High 23,926 3,067 Medium 44,196 5,084 Medium 59,102 9,343 Low 26,980 2,956 Low 22,729 1,000 Total 105,756 13,410 Total 105,756 13,410 % High 33% 40% High 23% 23% % Medium 42% 38% Medium 56% 70% % Low 26% 22% Low 21% 7% Source: IEG portfolio analysis of projects with financial sector content during the crisis. Note: Disbursements refer to March 31, 2011. Table C.2. Total Bank Lending and Financial Sector Lending by Levels of Financial Sector and Overall Stress, FY09-10 (US$ millions) FS Stress→ GDP Stress↓ High$ Medium$ Low$ High (%) Medium (%) Low (%) Total Bank Commitments High 13,073 21,160 347 12 20 0 Medium 5,653 25,251 13,292 5 24 13 Low 5,200 12,691 9,089 5 12 9 FS Lending Commitments High 1,612 3,753 6 12 28 0 Medium 333 4,226 525 2 32 4 Low 1,123 1,364 469 8 10 3 Source: IEG portfolio analysis of projects with financial sector content during the crisis. Note: Data on total Bank commitments refers to all borrowing countries during the crisis period (133). Data on FS lending commitments refers to all operations with any FS content during the crisis period, weighted by FS content.
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Appendix C. Financial Sector Dataieg.worldbankgroup.org/sites/default/files/Data/... · APPENDIX C 224 Table C.6. Financial Sector Projects by Region (FY09 and FY10) Region Number
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APPENDIX C
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Appendix C. Financial Sector Data
1. Financial Sector Portfolio Analysis
Table C.1. Total and Financial Sector Lending by Levels Overall and Financial Sector Stress, FY09-10 (US$ millions)
GDP Stress category
Total Bank commitments by GDP stress
FS Lending comm. by GDP
stress FS Stress category
Total Bank commitments by
FS Stress
FS Lending commitments by FS stress
High 34,580 5,371 High 23,926 3,067
Medium 44,196 5,084 Medium 59,102 9,343
Low 26,980 2,956 Low 22,729 1,000
Total 105,756 13,410 Total 105,756 13,410
% High 33% 40% High 23% 23%
% Medium 42% 38% Medium 56% 70%
% Low 26% 22% Low 21% 7% Source: IEG portfolio analysis of projects with financial sector content during the crisis. Note: Disbursements refer to March 31, 2011.
Table C.2. Total Bank Lending and Financial Sector Lending by Levels of Financial Sector and Overall Stress, FY09-10 (US$ millions)
FS Stress→ GDP Stress↓
High$ Medium$ Low$ High (%) Medium
(%) Low (%)
Total Bank Commitments
High 13,073 21,160 347 12 20 0
Medium 5,653 25,251 13,292 5 24 13
Low 5,200 12,691 9,089 5 12 9
FS Lending Commitments
High 1,612 3,753 6 12 28 0
Medium 333 4,226 525 2 32 4
Low 1,123 1,364 469 8 10 3 Source: IEG portfolio analysis of projects with financial sector content during the crisis. Note: Data on total Bank commitments refers to all borrowing countries during the crisis period (133). Data on FS lending commitments refers to all operations with any FS content during the crisis period, weighted by FS content.
27 crisis-related projects with >= 50% financial sector content
1.6 1.4 3.6
Source: IEG portfolio analysis of projects with financial sector content during the crisis. Note: Average scores, based on the scale: high / substantial / modest/ negligible = 4, 3, 2, 1.
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Table C.6. Financial Sector Projects by Region (FY09 and FY10)
Region Number of projects Crisis 77 Noncrisis 29
Crisis and FS>25%
Africa 22 8 14 3
East Asia and Pacific 16 11 5 5 Europe and Central Asia 24 22 2 18
Latin America and the Caribbean 20 18 2 11 Middle East and North Africa 11 8 3 6
South Asia 13 10 3 8
Total 106 77 29 51 Source: IEG portfolio analysis of projects with financial sector content during the crisis.
FA Banking 13 15.1 38 Corporate governance 0.9 1.4
FB Non-compulsory health finance
0 5.1 39 Infrastructure services for private sector development
2.8 1.5
FE Micro- and SME finance 14 10.9 40 Regulation and competition policy
11.4 6.1
FG Payment systems, securities clearance and settlement
1 0.7 41 Small and medium enterprise support
11.3 8.5
FD Non-compulsory pensions, insurance and contractual savings
3 0.0 42 Standards and financial reporting
3.2 2.2
FK Capital markets 2 0.0 43State enterprise/bank restructuring and privatization
4.0 6.0
FZ General finance 9 6.7 44 Other financial and private sector development
10.8 13.8
FC Housing finance and real estate markets
3 6.6
Source: IEG portfolio analysis of projects with financial sector content during the crisis.
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2. Financial Sector 18-Country In-Depth Analysis
Table C.8. World Bank Engagement in the Financial Sector before the Crisis
Average score 18 countries
Number of responses
Scores (frequency—no of countries)
4 3 2 1
Was the financial sector considered an area of priority in the CAS document preceding the crisis?
2.8 16 3 7 6 0
Did the financial sector account for a significant part of the lending program prior to the crisis?
2.2 16 2 4 5 5
Did the country program make provisions for ongoing financial sector engagement through AAA—FSAP, ESW or NLTA?
3.1 17 4 10 3 0
Did the country program incorporate provisions for financial sector stability enhancement?
2.4 16 2 5 6 3
Did the country program describe the need for expanded access to financial services?
3.1 16 5 8 3 0
Did the country program incorporate other areas of financial sector engagement?
2.5 16 3 5 5 3
Had the Bank offered technical assistance to the financial system in the last five years?
3.1 17 8 5 2 2
Other Had the Bank undertaken a crisis response simulation in the country concerned?
1.6 18 3 0 1 14
Overall, was the focus of recent engagement (over past 5 years) relevant given the experiences of the country during the crisis?
3.2 18 8 6 4 0
Was recent engagement adequate given the experiences of the country during the crisis?
3.4 18 10 6 2 0
What was the quality of Bank engagement, in terms of depth of dialogue with relevant authorities, responsiveness of government/ financial supervisors to the Bank’s engagement?
3.4 17 9 6 1 1
Source: IEG 18 in-depth country case studies. Note: AAA = analytic and advisory activities; CAS = Country Assistance Strategy; ESW = economic and sector work; FSAP = Financial Sector Assessment Program; NLTA = Nonlending technical assistance.
Table C.9. FSAP Contributions—18 Case Study Countries
Average 18 countries High=4
Subs-tantial Modest
Negli-gible
Had the country had a recent FSAP? (1-3 years: high; 4-7 years,: somewhat; more than 7 years, very little; never: not at all)
3.7 13 4 1 0
Were the findings of the FSAP relevant for the vulnerabilities experienced during the crisis?
3.4 8 7 2 0
To what extent had attempts been made to support the implementation of FSAP findings?
3.0 5 8 3 1
Source: IEG analysis of 18 country case studies. Note: FSAP = Financial Sector Assessment Program.
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3. World Bank Financial Sector AAA: Run-Up to and During the Crisis
Figure C.1. Financial Sector AAA by Region and Content (FY02–10)
Source: World Bank data.
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Figure C.2. Financial Sector: Outlays on AAA Compared to Lending and Content of AAA, FY05–10 (depth compared to risk)
Source: World Bank data.
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Figure C.3. The FSAP Program: Numbers, Outlays, and Regional Focus, FY02-11, Q2
Source: World Bank data.
4. Foreign Bank Ownership—Helpful or Harmful?
THE STATE OF THE DEBATE AND FINDINGS FROM THE PRESENT EVALUATION
International banking presence has sharply increased in most regions over the past dec-ade (Claessens and others 2008; Cull and Peira 2010). Share of assets held by foreign banks increased from an average of 17 percent in 1996 to 34 percent in 2005 in Latin America and 52 percent in Eastern Europe and Central Asia. In Sub-Saharan Africa for-eign bank participation is close to 50 percent. A number of countries reviewed here—Croatia, Hungary, Latvia, and Ukraine—had high levels of foreign bank presence before the crisis (84, 65, 84, and 51 percent, respectively, in 2008). To what extent did this affect the vulnerability of those countries?
Foreign banks can have positive impacts on their host countries, ranging from increased domestic competition leading to the provision of better products and services at lower costs; improved market stability through deeper capital and liquidity resources; and bet-ter risk management and capital allocation (Levine 1996; Walter and Gray 1983). The benefits of greater efficiency, lower net interest margins, and greater profitability have
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been demonstrated empirically (Claessens, Demirgüç-Kunt, and Huizing 2000, and 2001; Claessens and Laeven 2003; Micco, Panizza, and Yanez 2007; Bonin, Hasan, and Wachtel 2005). But foreign banks can also lead to loss of domestic banks’ market share, increased market consolidation, and “cherry picking” of the lowest-risk clients (Stiglitz, Jaramillo-Vallejo, and Park 1993; Detragiache, Tressel, and Gupta 2008; Levy-Yeyati and Micco 2007).
In the context of crises, cross-country evidence from developed and developing coun-tries has indicated that greater foreign bank presence is associated with lower probabili-ty of systemic banking crisis in the host country (Demirgüç-Kunt and Detragiache 1998). More recently there is evidence that financial liberalization has made domestic financial markets more prone to crises (Kose and others 2009; Reinhart and Rogoff 2009a). A growing body of literature suggests that foreign affiliates of multinational banks may indeed act as shock transmitters (Imai and Takarabe 2011).
As shown in this evaluation, foreign banks in several East European countries that had relatively easy access to capital from their parents (compared to the relatively difficult establishment of a stable domestic deposit base), and in a context of lax domestic regula-tion, were spurred to high levels of foreign currency–denominated lending. Loans were extended for long maturities, as in mortgage loans, mismatched against short- to me-dium-funding. Domestic banks, forced to compete, took large syndicated loans from abroad to finance their own consumer lending, adding rollover risk to maturity mis-match. In the prevailing “currency peg” arrangements, risks to consumers of foreign currency–denominated borrowing were not debated. From the perspective of parent banks, given the small size of these subsidiaries, increased risk has not been a major is-sue on a consolidated basis, and incentives to undertake consolidated supervision may not be high. Increased foreign ownership poses challenges to host supervisory authori-ties because of migration of decision-making to foreign banks’ parent structures, and differences between home and host country regulatory systems. This is exacerbated as the parent banks localize certain functions (treasury, back office, and so forth) for the entire bank in particular branches. Clearly the nature of host country policies toward the financial sector, as well as regulation and supervision, can affect the degree of risk en-countered and hence the risk-benefit tradeoff.
It is true that during the crisis, owners by and large provided the additional capital needed by subsidiaries, but parent banks may not always come to the assistance of their subsidiaries, and processes have not been formalized. This also depends on the financial strength of the parent bank (De Haas and Van Lelyveld 2010). Schnabl (2011) suggests that globalization in the banking sector establishes a transmission channel for bank li-quidity shocks, but that foreign bank ownership mitigates rather than amplifies the transmission through this channel. In the case of cross-border lending to emerging mar-kets, not only do foreign bank subsidiaries provide for a relatively stable credit source, but their local presence may also stabilize the cross-border component of bank lending during crises (De Haas and Van Horen 2011).
Organizational and regulatory arrangements for cross-border lending matter. Fiechter and others (2011) show that there is no one obvious structure that is best suited in all
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cases for cross-border expansion from the financial stability perspective. FSAPs could be more alert to cross-border issues. There is a need for more consistency, coordination, and mutual reliance.
5. Financial Sector Lending Before and During the Crisis
A COMPARISON IN THREE COUNTRIES
In Egypt, before the crisis, the Bank’s engagement included solid diagnostic work (an FSAP in 2002 and an FSAP Update in 2007), which were the basis for two programmatic financial sector DPLs in FY06 and FY08 of $500 million each. These programs, coordi-nated with the AfDB, the EU, and USAID, supported the ambitious 2004-08 Egyptian financial sector reform program, which included numerous major milestones—restructuring and recapitalization of four commercial banks, privatization of one state bank, and bringing another to the point of sale. State-owned banks also sold their shares in joint venture banks, reducing state presence in banking from 80 percent of bank assets to below 50 percent. Consolidation through increases in minimum capital reduced pri-vate banks from 53 in 2004 to 36 more robust banks in 2008. A new credit bureau streng-thened financial infrastructure and a secure large value (real-time gross settlement) payments system was completed. State-owned insurance companies were restructured and consolidated, and insurance supervision was improved substantially. Intermedia-ries in the capital market were subjected to higher capital requirements and improved supervision.
As described above, during the crisis, DPL III supported second-generation reforms. Its prior conditions focused substantially though not exclusively on strengthening of bank regulation, supervision, and macro-prudential regulation. However, known key legal issues—the lack of a modern bankruptcy and insolvency regime and an effective regi-stry of moveable collateral—were not addressed.
In Guatemala, the Bank’s involvement in pre-crisis lending began with extensive discus-sion of the 2000 Financial Sector Assessment Program (FSAP). The 2002 three-tranche Financial Sector Adjustment Loan (FSAL) ($150 million), which followed a macroeco-nomic crisis, supported a number of major financial reforms, together with its associated FTAL. Its prior conditions included passage of four major laws that (i) modernized the conduct of monetary, financial, and exchange rate policy and limited the Central Bank’s formerly unlimited liability in liquidity support; (ii) strengthened regulation of financial groups on-shore, as well as their large off-shore subsidiaries; (iii) provided for sanctions on and orderly exit of weak banks; and (iv) strengthened bank supervision and moved Guatemala closer to international standards. The FSAL’s second and third tranches also supported significant reform, as well as the creation of an real-time gross settlement payments system, a credit information system, a moveable property law, and deposit insurance and a bank resolution institution. The latter two institutions proved critical in avoiding a systemic crisis during 2006-07, because of the bankruptcy of a major Guate-malan bank. The stronger regulation and supervision helped reduce the number of smaller weak banks. The 2005 FSAP Update concluded that progress had been made, although much remained to be done.
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Guatemalan banks largely avoided the impacts of the global financial crisis. Develop-ment Policy Loans (DPLs) during the crisis focused elsewhere; prior conditions in finance were limited in scope and related to improving the coverage of risk-based and consolidated supervision, the standardization of debt issues to help develop the capital market, and passage of a law enhancing moveable collateral.
The 2002 Morocco FSAP recommended cleaning up the ailing public sector specialized banks, strengthening financial regulation and supervision, and upgrading financial in-frastructure. The Bank’s two- tranche 2005 Financial Sector DPL supported these objec-tives with a new central bank law that confers greater autonomy on the central bank in monetary policymaking, supervision of the banking system, and intervention in finan-cially troubled banks, reflecting a strong set of legal reforms. Morocco also effectively closed the weakest state-owned specialized bank and addressed the long-standing non-performing loans and weak capital positions of the two others. Improvements were made in bank regulation and supervision, including a shift toward risk-based supervi-sion. Liberalization of insurance premiums was completed, and regulation and supervi-sion of the insurance market was improved. Financial infrastructure also was improved through an RTGS payments system, improvements in financial reporting, and account-ing and auditing standards.
The global financial crisis did not have a major direct impact on Morocco’s financial sys-tem, but banks did suffer rising nonperforming loans from the previous rapid growth in lending for housing and to microfinance institutions. The major effects were in the ma-cro-economy: a fall in capital inflows, declines in exports, tourism and remittances, a ris-ing fiscal deficit. The Bank supported the government with a two-tranche DPL in De-cember 2009 for sustainable access to finance that supported the creation of a postal bank, a credit bureau, establishment of regulations for loan classification, provisioning and governance in microfinance institutions. Measures also included improvements in bank regulation and supervision, draft laws to improve supervision of insurance com-panies, pension funds, and, in capital markets, improvements in public debt manage-ment and marketing. Morocco’s DPL 2009 focused on both problems in microfinance and access to finance—which were arguably more relevant in Morocco given its large microfinance segment which had recently experienced rapid growth.
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6. Case Study Countries: Ranks by Financial Stress Indicators
Table C.10. Country Ranks by Financial Stress Indicators
Notes: Real GDP Actual (Growth Rate) is defined as Actual GDP Growth in 2009 versus Actual GDP Growth in 2005-07. Real GDP Forecast (Growth Rate) is defined as Actual GDP Growth in 2009 versus Forecast GDP Growth for 2009 as given in April 2008 World Economic Outlook. Deposits. For average changes, we compare deposits in 2005-07 versus deposits in Jul 2008-Dec 2009. For peak to trough, the trough in Jul 2008-Dec 2009 is compared against the peak in Jan 2007-Mar 2008. Deposits growth rate is m-o-m growth rate. Deposits are in real terms. Credit. For average changes, we compare credit in 2005-07 versus credit in Jul 2008-Dec 2009. For peak to trough, the trough in Jul 2008-Dec 2009 is compared against the peak in Jan 2007-Mar 2008. Credit growth rate is year-on-year growth rate. Credit is in real terms. Liquidity Support is defined as Claims from Monetary Authorities on Deposit Money Banks as a ratio of Total Deposits For average changes, we compare liquidity support in 2005-2007 versus that in Jul 2008-Dec 2009. For peak to trough, the peak in Jul 2008-Dec 2009 is compared against the trough in Jan 2007-Mar 2008. Liquidity Support growth rate is year-on-year growth rate. Stock Market Index. For average changes, we compare stock market index in 2005-2007 versus that in Jul 2008-Dec 2009. For peak to trough, the trough in Jul 2008-Dec 2009 is compared against the peak in Jan 2007-Mar 2008. Growth rate is year-on-year growth rate. These are not benchmark stock indices. EMBI. For average changes, we compare stock market index in 2005-07 versus that in Jul 2008-Dec 2009. For peak to trough, the peak in Jul 2008-Dec 2009 is compared against the trough in Jan 2007-Mar 2008. Growth rate is year-on-year growth rate. Exports. For average changes, we compare exports in 2005-2007 versus exports in 2009. Growth rate is year-on-year growth rate. Remittances. For average changes, we compare remittances in 2005-2007 versus remittances in 2009. Growth rate is year-on-year growth rate. Foreign Exchange Rate. For average changes, we compare fx rate in 2005-07 versus that in Jul 2008-Dec 2009. For peak to trough, the peak in Jul 2008-Dec 2009 is compared against the trough in Jan 2007-Mar 2008. Growth rate is year-on-year growth rate. Foreign Exchange rate is nominal exchange rate against USD. Foreign Reserves. For average changes, we compare fx reserves in 2005-07 versus that in Jul 2008-Dec 2009. For peak to trough, the trough in Jul 2008-Dec 2009 is compared against the peak in Jan 2007-Mar 2008. Growth rate is year-on-year growth rate.
Table C.11. Ranks of Sample Countries by Financial Stress Indicators (within sample ranking)
Note: Real GDP Actual (Growth Rate) is defined as Actual GDP Growth in 2009 versus Actual GDP Growth in 2005-07. Real GDP Forecast (Growth Rate) is defined as Actual GDP Growth in 2009 versus Forecast GDP Growth for 2009 as given in April 2008 World Economic Outlook. Deposits. For average changes, we compare deposits in 2005-07 versus deposits in Jul 2008-Dec 2009. For peak to trough, the trough in Jul 2008-Dec 2009 is compared against the peak in Jan 2007-Mar 2008. Deposits growth rate is m-o-m growth rate. Deposits are in real terms. Credit. For average changes, we compare credit in 2005-07 versus credit in Jul 2008-Dec 2009. For peak to trough, the trough in Jul 2008-Dec 2009 is compared against the peak in Jan 2007-Mar 2008. Credit growth rate is y-o-y growth rate. Credit is in real terms. Liquidity Support is defined as Claims from Monetary Authorities on Deposit Money Banks as a ratio of Total Deposits For average changes, we compare liquidity support in 2005-07 versus that in Jul 2008-Dec 2009. For peak to trough, the peak in Jul 2008-Dec 2009 is compared against the trough in Jan 2007-Mar 2008. Liquidity Support growth rate is y-o-y growth rate. Stock Market Index. For average changes, we compare stock market index in 2005-07 versus that in Jul 2008-Dec 2009. For peak to trough, the trough in Jul 2008-Dec 2009 is compared against the peak in Jan 2007-Mar 2008. Growth rate is y-o-y growth rate. These are not benchmark stock indices. EMBI. For average changes, we compare stock market index in 2005-07 versus that in Jul 2008-Dec 2009. For peak to trough, the peak in Jul 2008-Dec 2009 is compared against the trough in Jan 2007-Mar 2008. Growth rate is y-o-y growth rate. Exports. For average changes, we compare exports in 2005-07 versus exports in 2009. Growth rate is y-o-y growth rate. Remittances. For average changes, we compare remittances in 2005-07 versus remittances in 2009. Growth rate is y-o-y growth rate. Foreign Exchange Rate. For average changes, we compare fx rate in 2005-07 versus that in Jul 2008-Dec 2009. For peak to trough, the peak in Jul 2008-Dec 2009 is compared against the trough in Jan 2007-Mar 2008. Growth rate is y-o-y growth rate. Foreign Exchange rate is nominal exchange rate against USD. Foreign Reserves. For average changes, we compare fx reserves in 2005-07 versus that in Jul 2008-Dec 2009. For peak to trough, the trough in Jul 2008-Dec 2009 is compared against the peak in Jan 2007-Mar 2008. Growth rate is y-o-y growth rate.
Table C.12. Case Study Countries: Real Credit to Private Sector (year-on-year growth)
Ranked by pre-crisis credit growth
(highest to lowest)
Ranked by crisis period credit growth
(lowest to highest 2008 to 2009) Ranked by greatest declines in credit
growth rates
Country CY05-07 average Country
Jul 08-Dec 09 average Country
Percent change
Latvia 0.44 Egypt -0.06 Egypt, -99.91
Ukraine 0.44 Latvia 0.00 Latvia -0.99
Armenia 0.39 Guatemala 0.00 Mexico -0.92
Mongolia 0.36 Mexico 0.01 Guatemala -0.92
Turkey 0.28 Mongolia 0.03 Mongolia -0.91
Nigeria 0.26 Croatia 0.04 Colombia -0.76
Moldova 0.22 Colombia 0.04 Croatia -0.73
India 0.20 Moldova 0.07 Moldova -0.69
Colombia 0.19 India 0.07 Turkey -0.69
Mexico 0.16 Grenada 0.08 India -0.64
Costa Rica 0.16 Uruguay 0.08 Ukraine -0.48
Croatia 0.15 Turkey 0.09 Armenia -0.26
Morocco 0.13 Hungary 0.11 Costa Rica -0.24
Hungary 0.12 Costa Rica 0.12 Hungary -0.09
Guatemala 0.06 Morocco 0.16 Nigeria 0.19
Grenada 0.06 Ukraine 0.22 Grenada 0.21
Egypt 0.00 Armenia 0.29 Morocco 0.22
Uruguay -0.06 Nigeria 0.31 Uruguay 2.27 Source: IMF international financial statistics.
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7. Lending Data Tables
Figure C.4. World Bank Financial Sector Lending—Financial Intermediary Loans (FY09–10)
Source: World Bank data.
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Table C.13. Lines of Credit: Pricing During the Crisis Relative to Market Conditions
Country Bank/credit loan conditions Bank interest rate (as of
January 15, 2011) Maturity and grace
period (years)
Central bank discount rates
(12/2010-3/2011) (%)
Comm. Lending rates (12/2009 -
3/2011) (%)
Country risk classification (3/2011) (%)
Armenia Access to Finance for SMEs
US$ VSL at 6 month LIBOR plus variable spread
LIBOR + 0.28% - 0.20% =
0.54b
26. 5 and 5 8.50 18.8 6
Bosnia & Herzegovina Enhancing SME Access to Finance
EUR VSL at 6 month LIBOR for Euro plus variable spread
EURIBOR + 0.28% = 1.50a 25 and 10 ? 7.93 7
Croatia Export Finance Intermediation Loan
EUR FSL at 6 months LIBOR plus fixed spread
EURIBOR + 0.95% -0.20% =
1.97b
28.5 and 7 9.0 11.55 5
Moldova Competitiveness Enhancement Project (CEP) AF
IDA Credit service charge of 0.75% on disbursed balances.
20 and 10 8.0 20.54 7
Moldova Rural Investment and Services Project (RISPII) AF
IDA Credit service charge of 0.75% on disbursed balances.
40 and 10 8.0 20.54 7
Turkey Access to Finance for SMEs AF1
US$ and EUR FSL at 6 months LIBOR plus fixed spread
LIBOR + 0.75% - 0.20% = 1.00; EURIBOR + 0.75% -
0.20% = 1.77b
14 and 5 14.0 ? 4
Turkey Access to Finance for SMEs AF2
US$ and EUR FSL at 6 months LIBOR, plus fixed spread
LIBOR + 0.75 = 1.20;a EURIBOR + 0.75 = 1.97
14 and 5 14.0 ? 4
Turkey Second Access to Finance for SMEs
Kalkınma US$ VSL 6 months LIBOR for US Dollars plus variable spread. Ziraat Bank US$ VSL at 6 months LIBOR for US Dollars plus variable spread Vakıf Bank US$ VSL at 6 months LIBOR for US Dollars plus variable spread
LIBOR + 0.28 = 0.74a .Kalkinma 25 and 10; Ziraat 25 and 10 Vakif
29.5 and 6
14.0 ? 4
Egypt Enhancing Access to Finance for SMEs
US$ VSL at 6 month LIBOR plus variable spread.
LIBOR + 0.28 = 0.74a 28.5 and 7 8.25 11.98 4
India Financing PPP in Infrastructure through support to India Infrastructure Finance Company Limited
India Microfinance Scaling up Sustainable and Responsible Microfinance
For this loan there was both IDA and Bank financing,
Bank LIBOR + 0.28 = 0.74:a IDA = 0.75% on disbursed
balances
IDA 35; Bank 25 6.0 12.19 3
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235
Bangladesh Investment Promotion and Financing Facility Project AF
IDA Credit Service charge of 0.75 percent on disbursed balances
40 and 10 5.0 10.35 6
China Energy Efficiency Financing II Project
US$ VSL at 6-month LIBOR plus a variable spread
LIBOR + 0.28 = 0.74a Bullet payment 12/15/2027
2.25 5.81 2
Nicaragua Second Agricultural Technology Project AF
IDA grant 11.15–16.4 7
Tanzania Housing Finance Project
IDA Credit. A service fee of 0.75 percent will be charged on the disbursed balance outstanding. The maximum Commitment Charge Rate payable by the Recipient on the unwithdrawn Financing Balance shall be one-half of one percent (1 /2 of 1 %) per annum.
Service charge of 0.75 percent on disbursed balances
40 and 10 7.58 15.03 6
Sources: Bank rates from the World Bank Treasury website; Central Bank Rates from Central bank websites; commercial lending rates from CIA World Fact Book; Country Risk Classification from OECD. Note: VSL variable spread loan; LIBOR 0.45656 1/15/2011; FSL fixed spread loan; EURIBOR 1.224 1/3/2011. a. Approved after November, 30, 2009. b. Approved before November 30, 2009. Loans for which Invitation to Negotiate was issued prior to July 23, 2009 and which had been approved by November 30, 2009, the lending rate will be 0.20% lower based on a contractual spread of $0.30.