DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING FINANCIAL EDUCATION AND FINANCIAL LITERACY

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1 Public Disclosur Authorizd Th World Bank DOCUMENT OF THE WORLD BANK REPORT NO.: RES31474 Public Disclosur Authorizd Public Disclosur Authorizd RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF FINANCIAL EDUCATION AND FINANCIAL LITERACY APPROVED ON DECEMBER 7, 2010 TO RUSSIAN FEDERATION FINANCE, COMPETITIVENESS AND INNOVATION EUROPE AND CENTRAL ASIA Public Disclosur Authorizd Rgional Vic Prsidnt: Country Dirctor: Snior Global Practic Dirctor: Practic Managr/Managr: Task Tam Ladr: Cyril E Mullr Andras Horvai Cyla Pazarbasioglu-Dutz Marialisa Motta Sorn Nllmann

2 Th World Bank ABBREVIATIONS AND ACRONYMS FEFL: GoRF: IBRD: MoF: PDO: RVP: Financial Education and Financial Litracy Projct Govrnmnt of th Russian Fdration Intrnational Bank for Rconstruction and Dvlopmnt Ministry of Financ, Russian Fdration Projct Dvlopmnt Objctiv Rgional Vic Prsidnt

3 Th World Bank BASIC DATA Product Information Projct ID P Original EA Catgory Not Rquird (C) Approval Dat 07-Dc-2010 Financing Instrumnt Invstmnt Projct Financing Currnt EA Catgory Not Rquird (C) Currnt Closing Dat 30-Apr-2019 Organizations Borrowr Russian Fdration Rsponsibl Agncy Ministry of Financ,Noncommrcial Foundation for Entrpris Rstructuring and Financial Institutions Dvlopmnt (FER) Projct Dvlopmnt Objctiv (PDO) Original PDO Projct dvlopmnt objctivs ar to: (i) improv th financial litracy of Russian citizns (spcially, among th school-ag and collg studnts, and activ and potntial low- and middl-incom usrs of financial srvics); and (ii) strngthn th foundations for improving consumr protction in financial srvics. Summary Status of Financing Ln/Cr/Tf Approval Signing Effctivnss Closing Nt Commitmnt Disbursd Undisbursd IBRD Dc Mar Jul Apr Policy Waivr(s) Dos this rstructuring triggr th nd for any policy waivr(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING

4 Th World Bank A. Projct status 1. On Sptmbr 29, 2017, th Govrnmnt of th Russian Fdration (GoRF) approvd th joint Cntral Bank Ministry of Financ National Stratgy for Financial Litracy for th Russian Fdration and its implmntation roadmap. Approval of th stratgy and roadmap was a major milston for th projct. Subsquntly, on January 24, 2018, th WB rcivd an official rqust for projct rstructuring from th GoRF proposing to xtnd th Financial Education and Financial Litracy projct until Dcmbr 31, 2020 and providing an additional countrpart funding of US$54.0 million. 2. Th projct has bn rstructurd thr tims. Th first rstructuring (approvd on Jun 23, 2015) xtndd th closing dat by 22 months from th original closing dat of Jun 30, 2016 to April 30, A scond rstructuring (approvd on January 9, 2017) incrasd th Borrowr co-financing by US$ million and xtndd th projct closing dat by anothr 12 months to April 30, Th third rstructuring (approvd on May 12, 2017) incrasd th Borrowr co-financing by US$16.48 million. Th scond and third rstructurings incrasd Borrowr co-financing to US$ million from an initial US$88 million and total projct cost to US$ million from an initial US$103 million. Th projct is ratd satisfactory both on PDO and implmntation progrss. 3. Th proposd xtnsion has two objctivs. Th first is to support th implmntation of th National Stratgy for Financial Litracy until 2020, whn th govrnmnt will conduct a first assssmnt of th implmntation of th stratgy. Th scond objctiv is to scal up th projct by producing mor information and larning matrials, covring additional financial litracy topics, xtnding th training of futur tachrs, and dissminating information and larning matrials to mor bnficiaris. Undr th rstructuring, th Ministry of Financ plans to includ approximatly 15 rgions that ar currntly not participating in th program but hav xprssd intrst in joining it. 4. To achiv ths objctivs, th GoRF is proposing a third incras in Borrowr co-financing in th amount of US$54.0 million. Th proposd incras would bring th total projct financing to US$ million. Of th total, US$25 million would b IBRD financing and US$ million would b Borrowr co-financing. Th changs proposd through this rstructuring includ: a. Extnding th projct closing dat from April 30, 2019 to Dcmbr 31, 2020, b. Changing th cost of spcific componnts, c. Changing th disbursmnt stimats, d. Changing th disbursmnt arrangmnts to rais th Spcial Account ciling from US$1 million to US$1.7 million (procssd sparatly in th amndd Disbursmnt Lttr), and. Adjusting th rsults framwork.

5 Th World Bank B. Projct background 5. Th projct has th ambitious goal of inducing long-trm bhavioural chang in financial bhaviour, litracy, and ducation. Th projct focuss on improving th financial litracy of th population, improving consumr protction and knowldg, and nhancing th prformanc, transparncy and rgulatory bhaviour of financial providrs. It aims to dvlop a national stratgy, ducational and informational matrials, institutional capacity and undrlying businss practics, procsss, information, and laws and rgulations that will lay th foundation for a bttr functioning systm btwn consumrs and providrs of financial srvics that Russia will ultimatly implmnt through th national stratgy. 6. To nsur th validity of th intrvntions and impact on outcoms and in turn inform th national stratgy, th projct has rgularly assssd progrss in both untratd control rgions and an xpanding group of pilot rgions. Th projct bgan by conducting baslin assssmnts in 2 rgions (Kaliningrad and Volgograd) that would pilot th projct idntifications and 2 control rgions (th Ornburg and Yaroslavl oblasts) that would not. Th Ornburg and Yaroslavl provincs hav socioconomic charactristics similar to thos of th pilot provincs but did not rciv th pilot intrvntions. An additional 7 rgions launchd th pilot program in 2016, a furthr 15 rgions aftr th rstructuring in January 2017 rstructuring, and 28 mor rgions aftr th May 2017 rstructuring. 7. A cor aim of th projct is to build a solid foundation of financial ducation and financial litracy. Th projct is dvloping financial litracy and financial ducation courss in schools and collgs and through continuing ducation by training tachrs and tutors to tach financial litracy to childrn and studnts across th ducation systm. Th projct also offrs complmntary information and courss to adults and pnsionrs outsid th school systm, hlping to improv th financial litracy of popl in 60 prcnt of Russian rgions to mt dmand from th rgions. Concurrntly, mass mdia (TV spots, TV sris, social mdia, and vnts) ar raising awarnss about th importanc of financial litracy and improving financial bhaviour and knowldg nationwid. C. Rsults framwork 8. Whil th projct focuss on financial ducation in schools and univrsitis, it also includs indicators on th financial litracy and financial and savings bhaviour of th adult population. Th projct indicators focus on absolut incrmntal chang. 9. Th tam dvlopd two novl longitudinal assssmnts to gaug th impact of th projct and th mans to masur thm. On is an assssmnt of th financial and savings bhaviour of th Russian population, administrd via a nationwid survy of individuals ag 18 and up in a rprsntativ sampl consisting of ovr 6,000 housholds. Th survy collcts dtaild information about th financs of Russian housholds both as a whol and by houshold typ (including dmographic, community, incom and othr data). Th scond novl instrumnt is an assssmnt of th financial litracy rat of th Russian population, administrd via rgional survys of rprsntativ sampls of individuals from pilot rgions, control rgions, and a rprsntativ sampl of othr rgions. To complmnt and validat th rsults, th projct

6 Th World Bank also tracks data from a third sourc: th intrnationally-rcognisd OECD Programm for Intrnational Studnt Assssmnt (PISA) financial litracy assssmnt. Th PISA Financial Litracy Assssmnt covrs th ntir country. Comparison of th assssmnt rsults btwn th tratmnt rgions, th control rgions, and th othr rgions maks it possibl to dmonstrat projct impact in tratmnt rgions indpndnt from changs in th macroconomic framwork. This isolation of tratmnt ffcts has bn spcially important bcaus of th financial crisis that startd in Dcmbr 2014, in th middl of th projct. Togthr, ths thr sourcs provid ampl vidnc of th projct s impact. 10. Th projct conductd a baslin assssmnt in 2012 (yar 2 of th projct, i.., on yar aftr projct ffctivnss). Th 2012 bnchmark includd th PISA survy and administrations of th projct s two novl assssmnts in: a. Th initial 2 pilot provincs b. Th 2 control provincs, and c. A rprsntativ sampl of th rmaining 79 rgions of Russia (thus covring 83 Russian rgions in total). 11. Th projct conductd a follow-up assssmnt in Th follow-up assssmnt drw on th rsults of a nw PISA survy and includd a scond administration of th two novl assssmnts to: a. Assss progrss in th initial 2 pilot rgions, b. Crat a baslin for 7 additional pilot rgions that plannd to implmnt th pilot in 2016, and c. Masur concurrnt changs in th 2 control provincs and a rprsntativ sampl of th rmaining 72 rgions of Russia. 12. Th projct plans to conduct a third st of masurmnts in Th projct plans to conduct a scond follow-up masurmnt (i.., a third round of survys) in 2018 (yar 8 of th projct) in conjunction with a third administration of th PISA. Th third assssmnt in 2018 will draw on th rsults of th nw PISA survy and includ a third administration of th two novl assssmnts to: a. Assss furthr progrss in th initial 2 pilot rgions, b. Assss progrss for th first tim in th 7 additional pilot rgions that joind in 2015 and launchd rgional programs in 2016, c. Masur concurrnt changs in th 2 control provincs and a rprsntativ sampl of th rmaining 72 rgions of Russia including changs rsulting from broadr GoRF fforts to improv financial litracy across th country. Th govrnmnt is in th procss of tndring a nw study that will covr th rsults of all thr longitudinal assssmnts and provid important data about financial litracy in th country.

7 Th World Bank D. Progrss towards th achivmnt of th projct dvlopmnt objctivs 13. Progrss towards achiving th PDO is Satisfactory. Th projct is achiving its objctivs as vidncd by rcnt PISA financial litracy survy rsults and th additional assssmnts conductd undr th projct. Russia placd 4 th in th world in th 2015 PISA Financial Litracy Assssmnt, a hug lap from 10 th plac in th 2012 PISA. Russia s gain was th largst by any country and positiond Russia abov th OECD avrag. Ths rsults ar a major achivmnt for th projct as wll as for th country. 14. Four of th fiv PDO-lvl indicators show positiv trnds and substantial progrss. For xampl, th 2015 assssmnt dmonstratd that 66.7 prcnt of th targt population in th original 2 pilot rgions undrstand th trad-off btwn risks and rwards in choosing a financial product (an incras from 63.9 prcnt in th baslins assssmnt in 2012). Furthr, 35.7 prcnt of th targt population undrstand th importanc of having a financial cushion for lif mrgncis and criss (an incras from 30.5 prcnt). Th prcnt of school-agd and collg studnts in th 2 pilot rgions who undrstand risk-rward tradoffs and rwards in choosing financial products dclind from 58.5 prcnt in 2013 to 53 prcnt in Howvr, analysis of th rsults for th 2 control provincs and th ntir country indicat that th dclin was about half of that across th country as a whol. This slowr dclin in th pilot rgions may indicat that fforts undr th projct ar having a positiv, albit small, impact, possibly bcaus th markt is floodd with nw financial consumr products. 15. Th projct rsults framwork has rsultd in snsitiv masurmnts of projct impact dspit a fluid macroconomic nvironmnt. Slf-prcption of financial undrstanding drops during financial criss as th ntir population xprincs difficultis. For xampl, btwn 2012 and 2015 th projct assssmnt of th financial litracy rat of all of Russia (indicator 1.1) dmonstratd that th prcntag of all Russians undrstanding th trad-off btwn risks and rwards dclind from 65.9 prcnt to 63.5 prcnt. By contrast, th pilot rgions monitord undr th projct improvd during th sam priod from 63.9 prcnt to 66.7 prcnt. Thus, th contrast btwn th tratmnt rgions and th nation as a whol dmonstrats an vn largr comparativ improvmnt than th pur masurmnt of th incrmntal chang. E. Implmntation progrss 16. Implmntation progrss is Satisfactory. Ovr th last 12 months, th pac of projct implmntation has acclratd substantially. Commitmnts and disbursmnts hav almost doubld dspit th significant incras in funding. As of January 30, 2018, th projct had disbursd US$17.19 million (69 prcnt of th US$25 million IBRD loan), an incras of 25 prcntag points from January Total projct xpnditurs and commitmnts (IBRD and Borrowr as of January 1, 2018) stood at US$ million of th total projct financing of US$ million or about 85 prcnt (including US$13.3 million signd contracts undr th Fund of Good Idas). An additional US$22.9 million is in th final stags of tndring. 17. Th status of projct audit and financial managmnt is satisfactory. Thr ar no ovrdu audits. Projct financial managmnt rmains accptabl.

8 Th World Bank F. Projct achivmnts to dat 18. Th projct has achivd much during th svn yars of implmntation: a. On Sptmbr 29, 2017, th Ministry of Financ and th Cntral Bank approvd th National Stratgy for Financial Litracy for th Russian Fdration and its implmntation roadmap. (Th FEFL Exprt Council chaird by Mr. Alxy Kudrin approvd th stratgy on Dcmbr 14, Th Cntral Bank and th Ministry of Financ thn jointly finalisd it for prsntation to th govrnmnt.) b. Russia placd 4 th in th world in th rcnt 2015 PISA survy on financial litracy, moving up from 10 th plac in th 2012 PISA and pushing Russia abov th OECD avrag. Russia s gain was th largst by any country. It is highly plausibl that th projct s contribution to this outcom was strong if not dcisiv. Th PISA Financial Litracy Assssmnt uss random slction and rsults in absolut rankings. Th OECD s cross-country analysis of rsults from th PISA Financial Litracy Assssmnt shows that about 38 prcnt of outcoms of improvmnts in financial litracy rats ar du to spcific financial ducation and financial litracy intrvntions (othr than gnral numracy and litracy skills). Whil Russia has improvd marginally on numracy and litracy (Russia is just blow th OECD avarg in math and slightly abov th OECD avrag in rading and scinc) outsid of this projct, thr hav bn no othr countrywid intrvntions contributing to th sam purpos. Thrfor, Russia s improvmnt on th PISA Financial Litracy Assssmnt btwn 2012 and 2015 should in larg part b attributd to th projct intrvntions. c. Th WB tam shard intrnational bst practics on rgulatory framworks rgarding financial providrs disclosur of financial information to consumrs. d. Th projct hlpd stablish thr fdral mthodological cntrs of financial litracy and a ntwork of mthodological cntrs in 13 rgions to train tutors.. Th projct hlpd stablish a usr-frindly financial litracy and consumr protction informational and ducational portal ; f. Th projct supportd th implmntation of rgional financial litracy dvlopmnt programs in th 9 pilot rgions. Ths dvlopmnt programs hlpd stablish rgional financial litracy cntrs and dvlop and tst financial litracy ducation curricula, txtbooks, and othr matrials. g. Th projct supportd compltion of fiv rports on th status of financial consumr protction. h. Th projct hlpd dvlop 16 consumr counslling standards, which wr tstd and introducd in Rospotrbnadzor (th Agncy for Protction of Consumr Rights and Human Wlfar). i. Th projct supportd th launch of th consumr protction agncy on-lin kiosk and 24/7 hotlin srvic for consumr protction guidanc j. Th projct supportd th dvlopmnt of annual public information campaigns using social mdia and organisd vnts lik All Russia Financial Litracy Wk for childrn and young popl, National Savings

9 Th World Bank Wk, and information matrials lik th I want, I can, I know sris illustrating consumr rights for ky financial srvics. Ths vnts and matrials rach millions of popl vry yar. k. Th projct supportd th 2017 launch of th TV sris (soap-opra) Happinss Mony Can t Buy with an audinc of mor than 1 million popl. l. Th projct contributd to th Octobr 26, 2012 approval of th law on prsonal insolvncy/bankruptcy (para 1.1 rstructuring citizn s dbt and sal of citizns proprty), which ntrd into forc on Octobr 1, G. Rational for rstructuring 19. Th rational for th rstructuring is to xpand projct initiativs in light of th succsss achivd to dat. Th GoRF wants to tak advantag of th ffctiv structur of th projct to rach mor popl in mor placs and, notably, train mor tachrs. Th Borrowr is proposing to allocat an additional US$54 million to th projct to implmnt th National Stratgy for Financial Litracy and: a. Expand th national dissmination of financial litracy matrials and txtbooks, b. Incras th numbr of national financial ducation and financial litracy vnts, c. Extnd mdia outrach (including th nw TV soap opra), d. Incras th numbr of traind tachrs working in rgions by training both mor currnt tachrs and additional futur tachrs,. Sustaining and xpanding consumr protction srvics through its rgional cntrs, and f. Extnd th 24/7 hotlin srvics. 20. Th rstructuring would allow for broadr mdia outrach, widr dissmination of matrials, printing mor books, providing additional srvics, and incrasing training. Spcifically, it would xpand training activitis for tachrs, mthodologists, tutors and spcialists. Th program would train an additional 8,000 futur tachrs (raching a total of 12,000) and anothr 14,500 xisting tachrs in rlvant disciplins. Th rstructuring would produc additional ducational vnts (about 1,300 vnts bnfitting 2 million childrn and adults) and dissminat mor books. (By th nd of th projct, about 8 million printd txtbooks would hav bn publishd and dissminatd.) This scalabl outrach also rflcts incrasing dmand from th rgions mphasising financial litracy and ducation, capacity building and consumr protction srvics. Anothr 44 financial litracy and consumr protction improvmnt initiativs undr th Fund of Good Idas would b supportd, raching about 124 initiativs by th nd of th projct. Th tam xpcts th total numbr of complaints procssd to grow by 20,000 to about 150,000 and th numbr of consultations on financial consumr rights through th Consumr Agncy to grow by 30,000, raching 80,000 by th nd of th projct. 21. Th rstructuring would allow th World Bank to carry out furthr impact assssmnts and bttr masur th achivmnt of th PDO. Th rstructuring would allow th projct to conduct a fourth round

10 Th World Bank of th nationwid longitudinal assssmnt of th financial and savings bhaviour of th Russian population and th rgional longitudinal assssmnt of th financial litracy rat of th Russian population bfor th projct s nw nd dat in th yar Togthr, th four longitudinal administrations of th two masurs would allow th tam to assss th ovrall impact of th projct, including th addition of 7 pilot rgions in 2016, 28 rgions aftr th January 2017 rstructuring, and 15 furthr rgions aftr th May 2017 rstructuring. Th PISA financial litracy survy will also b carrid out in 2018 (and likly in 2021). II. DESCRIPTION OF PROPOSED CHANGES A. Summary of changs 22. Changs to componnts and cost: Th ky objctiv of th proposd rstructuring is to scal up th bnfits, spcially undr th ducational componnt, to mor rgions. Th addition would compris about 15 rgions in th Far East, Sibrian, North-Wst, Ural, Cntral, and Volga Fdral districts. Th rstructuring would allow th projct to rach about 20 million mor popl. Th rstructuring would tak advantag of th ffctiv implmntation structur of th WB projct built up ovr th last svn yars to build th capacity of mor rgions to implmnt th National Stratgy for Financial Litracy by: i. Incrasing th numbr of traind tachrs, ii. iii. iv. Providing mor books and larning matrial toolkits, Extnding financial litracy and ducation vnts and mass mdia (.g TV soap opra) and Mor widly dissminating public information about financial litracy and consumr protction 23. Extnsion of closing dat by 20 months, from April 30, 2019 to Dcmbr 31, 2020: Undr th proposd xtnsion, som activitis (for xampl, training tachrs and dissminating larning matrials) would hav a rgional focus. Othrs (lik mdia campaigns, vnts, and tlvision broadcasts) would hav national covrag drivn by dmand from th rgions. With th proposd fourth rstructuring, th total accumulatd xtnsion of th projct implmntation priod would b 4 and a half yars. 24. Additional co-financing from th Borrowr (US$54 million), incrasing th total projct cost and financing would incras to US$ million, of which US$25 million would b IBRD financing. This will incras th shar of Borrowr co-financing of ovrall projct costs from 80.9 prcnt to 86.4 prcnt and dcrasing th shar financd by th Bank from 19.2 prcnt to 13.6 prcnt. Th proposd rstructuring dos not ntail incrasing th IBRD commitmnt byond th original commitmnt of US$25 million. Th us and procds of th IBRD loan rmain th sam and would continu to support all projct componnts and activitis as originally plannd.

11 Th World Bank Whil th oprational cost covrd by th IBRD loan would also rmain th sam, th IBRD financing shar for Catgory 1 (Goods, tchnical srvics, consultants srvics, and sub-projct financing) would dcras from 12.08% to 6.5% as of March 15, IBRD loan procds ar xpctd to b fully utilisd; no cancllation of funds is xpctd. Catgory 2 (Oprating Costs) would dcras from 16% to 9.94% as of March 15, B. Rsults framwork 25. Th proposd rstructuring would allow a fourth round of assssmnts in Th 2020 assssmnt would follow on th 2012 baslin assssmnt, th 2015 progrss assssmnt, and th third assssmnt plannd for Th 2020 assssmnt would draw on th rsults of a nw OECD PISA survy and includ a fourth administration of th two novl assssmnts to (a) assss progrss in all 9 pilot rgions, and (b) masur concurrnt changs in th 2 control provincs and a rprsntativ sampl of th rmaining 72 rgions of Russia. 26. Th proposd rstructuring would allow monitoring projct activitis, outputs, rsults, and impacts for th approximatly 58 rgions addd sinc Th proposd rstructuring would add a fourth xtnsiv assssmnt of Russia s financial litracy rat and financial and savings bhaviour at th nd of th projct in 2020 to th two that hav bn prviously conductd and th on alrady plannd for Doing so would allow th projct to assss th impact of activitis in th up to 58 additional rgions addd sinc (Th projct addd 28 rgions aftr th rstructuring in January 2017 and 15 aftr th rstructuring in May Th proposd rstructuring would add as many as 15 furthr rgions.) Th impact assssmnt would again bnfit from comparison to th control rgions (Ornburg and Yaroslavl oblasts) that th projct has obsrvd without intrvntion sinc th initial baslin survys in In addition to th impact assssmnts conductd by survy, th rstructuring would also allow monitoring th activitis, outputs, and rsults for funding usd undr th projct (for xampl, for training and larning matrials), as rportd by th rgions. 27. Th rsults framwork would b updatd to rflct th incrasd scop in trms of both gographical covrag and outputs. 28. Som targts for output indicators would incras. Targts for th numbr of rgions rachd, th numbr of tachrs traind, and so on, hav bn raisd to account for th activitis to b addd to th projct undr this rstructuring. Th roadmap for th implmntation of th National Stratgy for Financial Litracy nvisions a tachr training modl with continuous training of nw cohorts of tachrs vry yar, which will b fundd by th GoRF byond th projct priod. Th roadmap thus also hlps incras th institutional sustainability of th projct. Th PDO indicators and targts hav not changd givn th fact that ths rlat to th original pilot and rcntly addd rgions and thus nd to b monitord basd on th original baslins. 29. Intrmdiat output indicators hav also bn adjustd. Th tam has adjustd th intrmdiat output indicators to rflct an incras in ky outputs that th projct would dlivr with th additional US$54

12 Th World Bank million GoRF co-financing. End-of-projct valus wr incrasd in th intrmdiat output indicators listd blow. C. Chang to componnt costs 30. Th numbr and titls of projct componnts rmain th sam, but th lvl of financing of componnts 1, 2, 3 and 4 has bn adjustd to rflct th updatd procurmnt plan and projctd costs. Th adjustmnts incorporat th actual costs of tndrd activitis and th procurmnt plan updatd vry 6 months and thus rflct th currnt projctd cost pr componnt. 31. Th activitis covrd by th additional Borrowr co-financing of US$54 million includ (oprational xpnss/projct managmnt of an additional US$1.1 million not includd blow): a. Componnt 1 (Dvlopmnt of Financial Litracy Stratgy, Financial Litracy and Consumr Protction Monitoring and Evaluation; Additional co-financing of US$6.3 million) Additional activitis would includ (i) a fourth round of th study to assss th financial litracy rat in participating rgions, control rgions, and a rprsntativ sampl of othr rgions (in yar 10 of th projct); (ii) a fourth round of th assssmnt of financial and savings bhaviour to collct dtaild information about th financs of Russian housholds from a sampl (in yar 10 of th projct); (iii) a study of th projct targt audinc s and othr stakholdrs prcption of th projct activitis aimd to improv financial litracy and financial ducation, (iv) a study of th intrrlations btwn financial litracy lvls and financial inclusion in th rgions covrd by survys to considr th study rsults in dfining th projct outcoms; (v) a study of th xprinc with valuating ducational programs undr th projct with th aim to improv th valuation mthodology and dvlop rcommndations for stting up a taching matrials monitoring systm; (vi) an analysis of th rsults of th survys compltd undr th projct and a summary assssmnt of th collctd data to complmnt th projct prformanc indicators. b. Componnt 2 (Financial Litracy Capacity Building; additional co-financing of US$22.6 million) and Componnt 3 (Dvlopmnt and implmntation of ducation programs and information campaign for improving financial litracy; Additional co-financing of US$10.8 million) Additional activitis would covr both rgional and ducational activitis. To provid taching guidanc to ducators traind at th Rgional Mthodological Cntrs and to support th training procss in rgional ducational institutions, th projct would financ th printing of additional books includd in th financial litracy taching and larning toolkits for grads 2-11 of scondary vocational ducation schools, orphanags and boarding schools and dlivr thm to th rgions. Th rstructuring would also financ an xpansion of th ntwork of rgional and cross-rgional financial litracy mthodological cntrs to train school tachrs and taching mthodologists and collg tachrs/trainrs, and link ntworks for activ tachrs training in urban and rural aras. Undr th information campaign, th projct would financ two additional National Financial Litracy Wks for Childrn and Youth. Th projct would produc printd products (public awarnss brochurs and booklts) and dissminat thm to th public via shopping outlts, social srvics, and mass-scal vnts, among othr channls.

13 Th World Bank c. Componnt 4 (Strngthning of consumr protction in financial srvics; Additional co-financing of US$13.2 million) Additional activitis would covr anothr st of booklts in th Want-Can-Know sris as wll as a st of infographics and two comic books for tnagrs to support it. Th matrials would covr digital financial srvics and intraction channls. Th focus would b on nw digital thrats and risks to consumrs. Also, th projct would financ dvlopmnt of a nw intractiv gam about digital financial srvics and a st of colouring books to accompany th booklts for youngr school studnts. An additional st of booklts, laflts, and infographics (graphical dpiction of issus) would covr pnsion-rlatd financial issus. A scond wav of intrrgional awarnss-raising fstivals Indpndnc Day would b dlivrd. Th fstivals ar intndd through intractiv mans to xpos studnts and tachrs as wll as pnsionrs and adults to th principls of rsponsibl consumr bhaviour in financial markts. Furthr, th opration of th hotlin for financial consumrs would continu. Indpndnt monitoring of financial consumr protction would continu as wll, with two additional thmatic wavs and introduction of a nw format for rgular xprt discussions of th indpndnt monitoring outcoms. Th discussions would b hld in parliamnt (Stat Duma and th Council of th Fdration), which would hlp to bttr influnc th implmntation of rcommndations rgarding financial markt rgulation improvmnts into law-making. Othr nw activitis undr Componnt 4 would aim to promot rsponsibl consumr bhaviour in financial markts and day-to-day financial litracy: (i) dissmination of th projct products to, and awarnss-raising of, pnsionrs via social assistanc cntrs (adjusting th bst availabl projct matrials to th targt audinc in trms of thir contnt, format, larning styl and providing DL for th staff of such cntrs); (ii) dissmination of th Projct products to, and awarnss-raising of, school and univrsity studnts, adults via libraris (adjusting th bst availabl Projct matrials for us in libraris and providing DL for library prsonnl; using libraris as a vnu for ntwork comptitions and national vnts modlld aftr th Total Splling Quiz («Тотальный диктант»); (iii) prparation and dlivry of a national musum projcts contst targtd to th staff of Russian musums that can offr thmd tours rlatd to financial bhaviour and financial litracy; with subsqunt support to dissminating bst practics of such tours dlivry in musums from diffrnt Russian rgions and transforming such musum activity for school studnts into acadmic contsts hld rmotly. d. Fund of Good Idas (Componnts 2, 3 and 4) Th rstructuring would allow holding rounds fiv and six of th comptitiv procss to slct at last 40 nw initiativs for th projct to support: (tntativly) 14 financial litracy initiativs, 14 financial consumr protction initiativs, and 12 rlatd to th information campaign. D. Procurmnt, Financing and Implmntation schduls 32. Th projct procurmnt, financing, and implmntation schduls hav bn updatd to rflct rvisd costs for tndrd activitis. To nsur th full disbursmnt of th total projct financing within th rmaining priod of 3 yars aftr th proposd rstructuring, th projct would tndr a numbr of nw contracts and amnd svral ongoing wll-prforming contracts. Concurrntly, ach contract amndmnt would b rviwd on a cas-by-cas basis (and rtndrd if rquird). In conclusion, th US$25 million

14 Th World Bank IBRD loan (with a rmaining undisbursd balanc of US$7.8 million) would also b fully disbursd basd on th financing shars by componnts shown in th tabl blow. III. SUMMARY OF CHANGES Changd Not Changd Chang in Rsults Framwork Chang in Componnts and Cost Chang in Loan Closing Dat(s) Chang in Disbursmnts Arrangmnts Chang in Disbursmnt Estimats Chang in Implmntation Schdul Othr Chang(s) Chang in Implmnting Agncy Chang in DDO Status Chang in Projct's Dvlopmnt Objctivs Cancllations Proposd Rallocation btwn Disbursmnt Catgoris Chang in Systmatic Oprations Risk-Rating Tool (SORT) Chang in Safguard Policis Triggrd Chang of EA catgory Chang in Lgal Covnants Chang in Institutional Arrangmnts Chang in Financial Managmnt Chang in Procurmnt Chang in Economic and Financial Analysis Chang in Tchnical Analysis Chang in Social Analysis Chang in Environmntal Analysis

15 PDO_IND_TABLE Th World Bank IV. DETAILED CHANGE(S) RESULTS FRAMEWORK Projct Dvlopmnt Objctiv Indicators 1.1 (1.1.1) % of activ and potntial low- and middl-incom usrs of financial srvics undrstanding th trad-off btwn risk and rwards in choosing financial products in Kaliningrad & Volgograd Unit of Masur: Prcntag Indicator Typ: Custom Rvisd Dat 31-May Jun Dc (1.1.2) % of activ and potntial low- and middl-incom usrs of financial srvics undrstanding th tradoff btwn risk and rwards in choosing financial products in 7 othr rgions Unit of Masur: Prcntag Indicator Typ: Custom Supplmnt Rvisd 1.2 (1.2.1) % of school-agd and collg studnts undrstanding risk-rward trad-off and rwards in choosing financial products in Kaliningrad and Volgograd pilot rgions Unit of Masur: Prcntag Indicator Typ: Custom Rvisd Dat 31-May Jun Dc-2020

16 Th World Bank 1.2 (1.2.2) % of school-agd and collg studnts undrstanding risk-rward trad-off and rwards in choosing financial products in 7 othr rgions Unit of Masur: Prcntag Indicator Typ: Custom Supplmnt No Chang 2.1 (2.1.1) % of activ and potntial low- and middl-incom usrs of financial srvics undrstanding th importanc of financial cushion in Kaliningrad and Volgograd pilot rgions Unit of Masur: Prcntag Indicator Typ: Custom Rvisd Dat 31-May Jun Dc (2.1.2) % of activ and potntial low- and middl-incom usrs of financial srvics undrstanding th importanc of financial cushion in 7 othr rgions Unit of Masur: Prcntag Indicator Typ: Custom Supplmnt No Chang 2.2 (2.2.1) % of school-agd and collg studnts undrstanding importanc of financial cushion in Kaliningrad and Volgograd pilot rgions Unit of Masur: Prcntag Indicator Typ: Custom Rvisd Dat 29-May Jun Dc (2.2.2) % of school-agd and collg studnts undrstanding importanc of financial cushion in 7 othr rgions Unit of Masur: Prcntag

17 Th World Bank Indicator Typ: Custom Supplmnt No Chang 3. (3.1) % of activ and potntial low- and middl-incom usrs of financial srvics who compar altrnativs bfor obtaining a crdit in Kaliningrad and Volgograd pilot rgions Unit of Masur: Prcntag Indicator Typ: Custom Rvisd Dat 31-May Jun Dc (3.2) % of activ and potntial low- and middl-incom usrs of financial srvics who compar altrnativs bfor obtaining a crdit in 7 othr rgions Unit of Masur: Prcntag Indicator Typ: Custom Supplmnt No Chang 4. (4.1) % of activ and potntial low- and middl-incom usrs of financial srvics who know what aministrativ/lgal action to b takn having discovrd a dcit by providr of a financial srvic Unit of Masur: Prcntag Indicator Typ: Custom Rvisd Dat 31-May Jun Dc (4.2) % of activ and potntial low- and middl-incom usrs of financial srvics who know what aministrativ/lgal action to b takn having discovrd a dcit by providr of a financial srvic Unit of Masur: Prcntag Indicator Typ: Custom Supplmnt

18 IO_IND_TABLE Th World Bank No Chang Intrmdiat Indicators 1.1 Financial litracy stratgy is dvlopd and agrd btwn ky stakholdrs Unit of Masur: Txt Indicator Typ: Custom Ys. Aftr xtnsiv intrnal and xtrnal consultations th National Stratgy has now bn approvd by No th Cntral Bank and Ministry of Financ. On Ys Rvisd Sptmbr 29, 2017, th stratgy was approvd by govrnmnt - a ky achivmnt and milston. Dat 28-Dc Jan Dc Rquirmnts to ducation programs ar approvd by th Exprt Board Unit of Masur: Txt Indicator Typ: Custom No Ys Ys Rvisd Dat 28-Dc Jun Dc Four rounds of th FL assssmnt ar conductd in YR 2,5,8,10 Unit of Masur: Txt Indicator Typ: Custom

19 Th World Bank No No, last survy to b conductd in yar 8 (2018) Ys, with xtnsion survy shiftd from Y7 to Y8 and now also yar 10 Dat 28-Dc Jun Dc-2020 Rvisd 1.4 Four rounds of th Consumr Financ Survy ar conductd in YR 2,5,8, 10 Unit of Masur: Txt Indicator Typ: Custom Ys, with xtnsion No, last survy to b survy movd from Y7 No conductd in yar 8 Rvisd to Y8 and now also (2018) yar 10 Dat 28-Dc Jun Dc Ministry of Financ stablishs ddicatd working group on financial litracy and consumr protction Unit of Masur: Txt Indicator Typ: Custom No Ys Ys Rvisd Dat 01-Sp Nov Dc Amndmnts to th fdral lgislation to provid for ffctiv consumr protction in financial markts and financial litracy ar prpard Unit of Masur: Txt Indicator Typ: Custom No Ys Ys No Chang Dat 28-Dc Jun Apr # of rgional FL dvlopmnt programs bing implmntd with th Projct support Unit of Masur: Numbr Indicator Typ: Custom

20 Th World Bank Rvisd Dat 28-Dc Jun Dc (2.2.1) # of tachrs of th rlvant subjcts traind by th Projct in rgions (two pilot and nw participating rgions) Unit of Masur: Numbr Indicator Typ: Custom Rvisd Dat 28-Dc Jun Dc (2.2.2 (mthodists) and 2.4 (consultants) # of financial litracy spcialists (consultants) and mthodists traind for gnral ducation and vocational schools by th Projct rgions (two pilot an Unit of Masur: Numbr Indicator Typ: Custom Rvisd Dat 28-Dc Jun Apr-2019 (2.7) Numbr of financial litracy txtbooks publishd and distributd in rgions (up to < 6,000,000) Unit of Masur: Numbr Indicator Typ: Custom Supplmnt No Chang # mthodists for gnral ducation and vocational schools, prpard by th Projct Unit of Masur: Numbr Indicator Typ: Custom Supplmnt No Chang

21 Th World Bank 2.3 (2.3: # studnts - futur tachrs traind undr th Projct in financial litracy) Unit of Masur: Numbr Indicator Typ: Custom Supplmnt Nw 2.6 FL information and ducational portal stablishd and fully oprational Unit of Masur: Txt Indicator Typ: Custom No Ys, and about visitors to sit Ys Rvisd Dat 28-Dc Jun Dc #ducation vnts carrid out by financial consultants Unit of Masur: Numbr Indicator Typ: Custom Supplmnt Nw 3.1 (3.1.2) # of ducational moduls and larning matrials dvlopd nationally at fdral lvl Unit of Masur: Numbr Indicator Typ: Custom Rvisd Dat 28-Dc Jun Dc (3.1.1) # ducational programs cratd at Fdral lvl Unit of Masur: Numbr Indicator Typ: Custom Supplmnt

22 Th World Bank Rvisd (3.9) Numbr of digital products (information, dutainmnt and social ad vidos, gams, wbpags) cratd undr Funds of Good Idas Unit of Masur: Numbr Indicator Typ: Custom Supplmnt Rvisd 3.2 National information campaign dsignd and launchd Unit of Masur: Txt Indicator Typ: Custom No Ys Ys Rvisd Dat 28-Dc Jun Dc (3.6) # of financial litracy and consumr protction improvmnt initiativs supportd through th Fund of Good Idas Unit of Masur: Numbr Indicator Typ: Custom Rvisd Dat 28-Dc Jun Dc A systm of hotlin call cntrs to advis consumrs on financial issus is stablishd and oprational (Ys or No) Unit of Masur: Numbr Indicator Typ: Custom Rvisd

23 Th World Bank Dat 28-Dc Jun Dc Total numbr of complaints consultations on financial consumr rights issus providd by Rospotrbnadzor spcialists (targt valu annualy) Unit of Masur: Numbr Indicator Typ: Custom Brakdown Rvisd Dat 31-May Jun Dc Numbr of financial consumr complaints xamind through Rospotrbnadzor "hotlins" and public officrs (targt valu complaints annualy) Unit of Masur: Numbr Indicator Typ: Custom Brakdown Rvisd Dat 31-May Jun Dc Spcial systm for submitting and handling financial consumr complaints in -format is dvlopd Unit of Masur: Txt Indicator Typ: Custom No Ys, th systm is now stablishd. Ys Rvisd Dat 28-Dc Jun Dc An -library (infothqu) on topical CP issus is stablishd and oprational Unit of Masur: Txt Indicator Typ: Custom No Ys, it is now stablishd and functioning. Ys No Chang Dat 28-Dc Jun Apr Numbr of Rospotrbnadzor consulting cntrs for consumrs in Russian Fdration

24 Th World Bank Unit of Masur: Numbr Indicator Typ: Custom No Chang Dat 28-Dc Jun Dc # of Rospotrbnadzor spcialists traind during th Projct on financial consumr protction and financial litracy Unit of Masur: Numbr Indicator Typ: Custom Rvisd Dat 28-Dc Jun Dc # of th rports ddicatd to th financial consumr protction, containing indpndnt monitoring rsults and rcommndations Unit of Masur: Amount(USD) Indicator Typ: Custom Rvisd Dat 28-Dc Jan Dc-2020 (4.8) # of information matrials (booklts/laflts) on financial consumr protction distributd to consumrs by Rospotrbnadzor staff Unit of Masur: Amount(USD) Indicator Typ: Custom Supplmnt No Chang

25 Th World Bank COMPONENTS Currnt Componnt Nam Dvlopmnt of financial litracy stratgy and financial litracy and consumr protction monitoring and valuation Financial Litracy Capacity Building Dvlopmnt and implmntation of ducation programs and information campaign for improving financial litracy, incl $14 million in subprojcts Strngthning of consumr protction in financial srvics Currnt Cost (US$M) Action Rvisd Rvisd Rvisd Rvisd Proposd Componnt Nam Dvlopmnt of financial litracy stratgy and financial litracy and consumr protction monitoring and valuation Financial Litracy Capacity Building Dvlopmnt and implmntation of ducation programs and information campaign for improving financial litracy, incl $14 million in subprojcts Strngthning of consumr protction in financial srvics Proposd Cost (US$M) Projct Managmnt 5.84 Rvisd Projct Managmnt 6.94 TOTAL LOAN CLOSING DATE(S) Ln/Cr/Tf Status Original Closing IBRD Effctiv 30-Jun-2016 Rvisd Closing(s) 30-Apr-2018, 30-Apr Proposd Closing 31-Dc-2020 Proposd Dadlin for Withdrawal Applications 30-Apr-2021 DISBURSEMENT ESTIMATES Chang in Disbursmnt Estimats Ys Yar Currnt Proposd

26 Th World Bank