This initiative aims to improve access to affordable housing for refugee households while reinforcing Armenia’s housing and mortgage systems. The financing includes a $24.4 million grant from the Global Concessional Financing Facility (GCFF) and a $10 million grant from the International Bank for Reconstruction and Development (IBRD) Surplus-Funded Livable Planet Fund.

Immediate and Long-Term Support for Refugees

In alignment with the Armenian government’s Refugees Housing Support State Program, the project will deliver immediate rental assistance to over 40,000 refugees and help approximately 6,500 refugee households acquire permanent homes through mortgage subsidies. The project also provides financial support to the National Mortgage Company (NMC) to facilitate refinancing for commercial banks offering mortgage loans within the program, and upgrades to the program’s management systems.

“Supporting Armenian families to recover and settle into stable homes is central to this project, and it also helps stabilize the housing market and bolster economic performance,” said Fabrizio Zarcone, World Bank Country Manager for Armenia. “We’re pairing near-term assistance with investments that will strengthen Armenia’s systems for years to come.”

Strengthening Institutions and Policy Frameworks

Beyond direct assistance, the project will enhance institutional and housing policy frameworks and improve NMC’s corporate governance. The Ministry of Labor and Social Affairs and NMC will lead implementation, with strategic oversight from a government steering committee.

Collaboration with International Partners

The project complements support from development partners such as the Asian Development Bank and aligns with ongoing efforts by the UNHCR, UNDP, IOM, and civil society organizations to provide humanitarian assistance, facilitate integration, and expand livelihoods for refugees.

These investments are expected to expand access to housing finance, catalyze private sector investment in the mortgage market, and help Armenia move towards a more sustainable, resilient, and inclusive housing system.

Global Concessional Financing Facility: A Key Contributor

The GCFF has provided Armenia with $40.4 million in grants, enabling $350 million in concessional loans from the World Bank to support host communities and refugees in education, housing, and refugee policies. The latest GCFF contribution was made possible by the governments of Japan, the Netherlands, and Sweden.

World Bank’s Ongoing Commitment to Armenia

Since 1992, the World Bank has provided around $3 billion to Armenia, including a current portfolio of approximately $415 million in investment lending, grants, analytical work, and technical assistance. Armenia became a donor to the International Development Association (IDA) in 2023, marking a significant milestone in its development journey.

The World Bank remains committed to supporting Armenia’s path toward poverty reduction and sustainable development on a livable planet.

Translation AI assisted