Moscow, November 30, 2007 Russian Public Opinion Research Center (VCIOM) in cooperation with 

<link www.nacfin.ru _blank>

National Agency for Financial Studies</link> (NAFS) presents information concerning the level to which Russians are aware of the fact that starting from July 1 this year banks will have to disclose the interest rate on credits for the population (including all the fees and commissions for credit formalization, insurance, etc.), and how this innovation affected their attitude to bank loans.

Half of respondents (50%) are informed of the new requirements that banks need to meet when giving a loan to the population (i.e. obligatory disclosing of the effective interest rate, including all fees and commissions for credit formalization, insurance, etc.). This figure includes 22% of respondents who are definitely aware of the innovation, as they themselves identify, and 28% who "have heard something about it".

A noticeable increase in the degree of awareness as far as the new requirements to banks are concerned, may be observed with higher education level that the respondents possess. The share of those who are more or less informed of the innovation increases from 19% among respondents with elementary education up to 68% among respondents with higher education or incomplete higher. By the same token, the share of respondents well informed of it increases from 7% up to 37%, and those who have heard something about it from 12% up to 31%.

This change has not affected their attitude to bank loans in any way, as two thirds of respondents (65%) identify. The attitude of 16% of respondents towards bank loans has improved, as the threat of hidden interest rates has disappeared, and they now believe bank loans to have become clearer. The attitude of nearly 11% of respondents has worsened for the reason that the high interest rates will now be visible. 8% of respondents found it hard to provide their estimation of the issue in question.

The attitude to credits became more positive, first of all, among the respondents who are well informed of the innovation. 40% of them identify, that their opinion on credits has changed for the better. Respondents whose opinion has worsened are three times less numerous (12%), whereas 48% specify, that it did not affect their attitude in any way.

The all-Russia opinion poll was conducted by VCIOM on September 15-16, 2007. 1600 respondents were interviewed in 153 population areas of 46 regions of Russia. The statistical error does not exceed 3.4%.

 

Do you know that starting from July 1, 2007 banks will have to disclose their interest rates on loans given to the population (including all fees and commissions for credit formalization, insurance, etc.)?
	Total respondents	Level of Education
		Elementary or lower, junior secondary education	Secondary education (school or vocational school)	Post-secondary education  (technical school)	Incomplete higher education (no less than 6 semesters),  higher education
Yes, I do know about	22	7	16	24	37
Yes, I have heard something about it	28	12	27	31	31
No, I do not know about it	48	77	55	43	31
Hard to say	2	4	2	2	1

Please specify, whether the innovation has affected your attitude to bank loans.
	Total respondents	Respondents well aware of the innovations introduced to banks (They all answered, "Yes, I do know about it")
The attitude towards bank loans has improved, as the threat of hidden interest rates has disappeared, and they now believe bank loans to have become clearer	16	40
My attitude towards bank loans has worsened for the reason that the high interest rates will now be visible	11	12
It did not affect my attitude in any way	65	48
Hard to say	8	-