ArmInfo. On December 23, the World Bank's Board of Executive Directors approved US$250 million in financing for the Housing and Mortgage Market Improvement Project in Armenia to increase access to affordable housing for refugee families and strengthen the country's housing and mortgage systems, according to a statement from the World Bank's Armenia office.
The financing package includes a US$24.4 million grant from the Global Concessional Financing Facility and a US$10 million grant from the Sustainable Planet Fund, financed by the International Bank for Reconstruction and Development's surplus. "Supporting Armenian families to rebuild and establish stable homes is a central element of this project, and will also help stabilize the housing market and strengthen economic performance," said Fabrizio Zarcone, World Bank Country Manager for Armenia. "We are combining short-term assistance with investments that will strengthen Armenia's systems for years to come." As part of the government's refugee housing support program, this project will provide immediate rental assistance to over 40,000 refugees and help approximately 6,500 refugee families acquire permanent housing through mortgage subsidies. It will also provide financial support to the National Mortgage Company (NMC) to facilitate mortgage refinancing by commercial banks providing loans under the housing program and to modernize the management systems of the government's refugee housing support program. The project will also help strengthen institutional and housing policies and improve NMC's corporate governance. The project will be implemented by the Ministry of Labor and Social Affairs and the NMC under the strategic oversight of a government steering committee.
This project complements parallel support from development partners, including the Asian Development Bank, and is consistent with ongoing efforts by international development partners such as the United Nations High Commissioner for Refugees (UNHCR), the United Nations Development Programme (UNDP), the International Organization for Migration (IOM), and civil society organizations to provide humanitarian assistance, promote integration, and expand opportunities for refugees.
Collectively, these investments will expand access to housing finance, spur private sector investment in the mortgage market, and help Armenia transition to a more sustainable, resilient, and inclusive housing system. The Global Concessional Financing Facility (GCF) provided $40.4 million in grants to Armenia, enabling the World Bank to provide $350 million in concessional loans to support host communities and refugees in education, housing, and refugee policy. The GCF contribution to Armenia through this project was made by the governments of Japan, the Netherlands, and Sweden. Since 1992, the World Bank has provided nearly $3 billion to Armenia, including an ongoing investment lending portfolio of approximately $415 million, as well as grants, analytical work, and technical assistance from the International Bank for Reconstruction and Development (IBRD), trust funds, and the International Development Association (IARC), to which Armenia became a donor in 2023.
