ArmInfo. Armenia will receive a $240 million loan from the International Bank for Reconstruction and Development, which will be used to address the housing needs of internally displaced persons from Nagorno-Karabakh. The Armenian government approved the signing of an agreement with the Bank at a meeting on April 18.
The project justification emphasizes that the total funding for the program is $284.4 million. In addition to the $240 million loan, grants of $24.4 million from the Global Concessional Financing Facility and $10 million from the Living Planet Fund will also be secured. The IBRD will also provide a $10 million loan to the National Mortgage Company, guaranteed by the state.
The program, aimed at improving access to housing solutions for refugees and promoting the expansion of the mortgage lending market, consists of three components: housing subsidies and institutional development support; provision of cash assistance to beneficiaries of the social assistance program to assist them with rent, utilities, and other consumer expenses; and financing of monthly mortgage payments or down payments for apartment purchases, payable under eligible mortgage loans provided to beneficiaries of the housing support program, through the provision of mortgage subsidies for real estate acquisition. The digital enhancement of the management information system, strengthening of institutional capacity, and support for reforms in the housing sector are also planned.
The Ministry of Labor and Social Affairs of the Republic of Armenia is responsible for project implementation. The financial agreement will enter into force 180 days from the date of signing the document. No later than 90 days after this date, a Steering Committee and a Project Implementation Unit will be established to implement and monitor the program.
