diff --git a/server/core/secrets.c b/server/core/secrets.c
index 9ea0819a5..c0b82c347 100644
--- a/server/core/secrets.c
+++ b/server/core/secrets.c
@@ -74,16 +74,29 @@ int             len;
 	snprintf(secret_file, 255, "%s/etc/.secrets", home);
 
 	/* Try to access secrets file */
-	if (access(secret_file, R_OK) == -1) {
+	if (access(secret_file, R_OK) == -1) 
+	{
                 int eno = errno;
                 errno = 0;
-                LOGIF(LE, (skygw_log_write_flush(
-                        LOGFILE_ERROR,
-                        "Error : access for secrets file "
-                        "[%s] failed. Error %d, %s.",
-                        secret_file,
-                        eno,
-                        strerror(eno))));
+		if (eno == ENOENT)
+		{
+			LOGIF(LM, (skygw_log_write(
+				LOGFILE_MESSAGE,
+				"Encrypted password file %s can't be accessed "
+				"(%s). Password encryption is not used.",
+				secret_file,
+				strerror(eno))));
+		}
+		else
+		{
+			LOGIF(LE, (skygw_log_write_flush(
+				LOGFILE_ERROR,
+				"Error : access for secrets file "
+				"[%s] failed. Error %d, %s.",
+				secret_file,
+				eno,
+				strerror(eno))));
+		}
 		return NULL;
         }