ArmInfo. Armenia will receive a $16.456 million grant from the Global Concessional Financing Facility (GCFF) to co-finance a $250 million loan program aimed at addressing the housing needs of internally displaced persons (IDPs) from Nagorno-Karabakh. The decision was approved by the Armenian Cabinet of Ministers on November 20.
The signing of the THRIVE loan and grant agreements was approved by the Armenian government on October 30. The program aims to develop a sustainable, resilient, and inclusive housing system in Armenia, promoting the socioeconomic integration and well-being of refugees.
As stated in the explanatory note to the document, the project will be financed by the Asian Development Bank (ADB) (a $250 million loan) and the Global Concessional Financing Facility (GCFF, a $16.450 million grant). The goal of the project is to develop a long-term housing policy and improve its implementation processes. The planned funding will be implemented in stages, based on the achievement of established indicators and corresponding results.
The THRIVE program aims to provide long-term housing for approximately 109,000 ethnic Armenian refugees, which is in line with the measures envisaged in the 2021-2026 program of the Government of the Republic of Armenia.
It is noted that on May 16, 2024, the Government of the Republic of Armenia approved and is implementing the State Housing Assistance Program for Families of Internally Displaced Persons from Karabakh. To date, 3,344 families have received certificates under this program, of which 1,263 have already implemented them. Over 2 billion drams have already been allocated from the state budget under this program.
The $250 million loan will be provided under the following terms: The interest rate on the loan is floating, the loan disbursement deadline is December 31, 2030, and the annual interest rate on the loan is SOFR + 0.8% margin (taking into account the SOFR rate on September 29, 2025, which is 4.13%, the floating interest rate on the loan will be 4.93%). The reserve fee is 0.15% per annum, calculated on the unused loan amount. The principal is repayable in 34 equal semi-annual payments from December 15, 2035, to June 15, 2052. The loan term is 27 years, of which a grace period of 10 years is included. Loan servicing payments are made semi-annually, on June 15 and December 15 of each year.
As a reminder, the Armenian government's housing support program for families forcibly displaced from Nagorno-Karabakh consists of three components. One component is the purchase of an apartment or private home through the issuance of a certificate; the second is the issuance of a certificate for the construction of a private home; and the third is mortgage repayment. Beneficiaries of the program are families forcibly displaced from Nagorno-Karabakh after September 27, 2020, if all family members, including minors, are Armenian citizens. The area of the purchased apartment must be at least 12 square meters per family member, and the price of the apartment cannot exceed 55 million drams. The program does not apply to families from Kashatagh (Lachin), or to families in which at least one member owns residential property in Armenia at the time of application.
The project will be financed by partner banks, and the government will cover the support amount and interest. If the certificate is issued and a positive balance is formed, it will be allocated to the following three programs.
The first is the purchase of a rural land plot worth up to 5 million drams.
Second, if the acquired property requires renovation, it can be renovated for up to 4 million drams. Additionally, there is the option to purchase furniture and household appliances for up to 2 million drams. To build a house, the beneficiary must choose one of the approved standard designs, and construction can only be carried out by a construction company licensed in Armenia.
If the beneficiary does not have a plot of land for building a private home, the authorities will allow up to 3 million drams of the support amount to be used for the purchase of a plot of land, the area of which must be at least 400 square meters.
The program is terminated if two adult family members are under 55 years of age or one of the minors is outside Armenia for more than 183 days within one calendar year (except in cases of studying at certain educational institutions). In this case, property ownership is transferred to the state.
