The World Bank has approved $250 million in financing for the Armenia Housing Response and Mortgage Market Enhancement Project, aimed at improving access to affordable housing for refugee households while strengthening Armenia’s housing and mortgage systems. The financing includes a $24.4 million grant from the Global Concessional Financing Facility and a $10 million grant from the International Bank for Reconstruction and Development Surplus-Funded Livable Planet Fund. This initiative combines immediate support for refugees with long-term investments to enhance the country’s housing infrastructure and market stability.
The project will provide immediate rental assistance to over 40,000 refugee households and support approximately 6,500 households in acquiring permanent homes through mortgage subsidies. It will also extend financial backing to the National Mortgage Company to facilitate refinancing for commercial banks participating in the program and upgrade management systems under the Refugee Housing Support State Program. These measures aim to stabilize the housing market and improve access to affordable financing for refugees.
Beyond immediate relief, the project seeks to strengthen Armenia’s institutional and policy frameworks related to housing and enhance the governance of the National Mortgage Company. Implementation will be led by the Ministry of Labor and Social Affairs and the National Mortgage Company, under the guidance of a government steering committee. The initiative is coordinated with other development partners, including the Asian Development Bank, UNHCR, UNDP, IOM, and civil society organizations, to ensure comprehensive support for refugee integration, livelihoods, and long-term housing security.
By expanding access to housing finance and catalyzing private sector investment in the mortgage market, the project contributes to building a more sustainable, resilient, and inclusive housing system in Armenia. The Global Concessional Financing Facility has also supported Armenia with $40.4 million in grants, enabling $350 million in concessional World Bank loans for programs in education, housing, and refugee policy.
The World Bank has maintained a long-standing commitment to Armenia’s development, providing around $3 billion since 1992 through investment lending, grants, technical assistance, and analytical work. The Bank’s ongoing support aims to reduce poverty, strengthen institutional capacities, and foster sustainable development, with Armenia also contributing as a donor to the International Development Association since 2023.
