The World Bank’s Board of Executive Directors has approved $250 million in financing for the Armenia Housing Response and Mortgage Market Enhancement Project, a program designed to expand access to affordable housing for refugee households through rental assistance and subsidized mortgages, while also strengthening Armenia’s housing and mortgage systems. The package, approved on Tuesday, combines concessional loans and grants and aims to encourage private sector investment in housing finance. It 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’s Surplus-Funded Livable Planet Fund, with the GCFF contribution funded by the governments of Japan, the Netherlands, and Sweden.
According to Fabrizio Zarcone, World Bank Country Manager for Armenia, “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. We’re pairing near-term assistance with investments that will strengthen Armenia’s systems for years to come.”
While the World Bank refers to “refugees,” the program is widely understood to primarily support more than 100,000 ethnic Armenians displaced from Artsakh (Nagorno-Karabakh) in 2023 following Azerbaijan’s military offensive, which sharply tightened the housing market and strained social support systems, particularly in Yerevan and surrounding areas.
The project supports the government’s Refugees Housing Support State Program and is designed to deliver immediate rental assistance to more than 40,000 refugees and help roughly 6,500 refugee households acquire permanent homes through mortgage subsidies. It will also provide financial support to the National Mortgage Company (NMC) to facilitate refinancing for commercial banks participating in the housing program and to upgrade management systems for refugee housing support. Beyond direct assistance, the project aims to strengthen institutional and housing policy frameworks, enhance NMC’s corporate governance, and catalyze private sector investment in the mortgage market. Implementation will be led by the Ministry of Labor and Social Affairs and NMC, under strategic oversight from a government steering committee.
The World Bank said that together, these investments will expand access to housing finance, strengthen Armenia’s mortgage market, stabilize the housing sector, and help the country move toward a more sustainable, resilient, and inclusive housing system, while supporting the long-term integration of displaced populations and catalyzing private sector investment in the mortgage market.
The project complements parallel support from development partners, including the Asian Development Bank, and aligns with ongoing efforts by international development partners such as UNHCR, UNDP, IOM, and civil society organizations to provide humanitarian assistance, facilitate integration, and expand livelihoods for refugees.
The GCFF has previously 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 related programs.
Since 1992, the World Bank has provided Armenia with approximately $3 billion in financing and grants, including a current portfolio of about $420 million in investment lending, alongside grants, analytical work, and technical assistance from the IBRD, IDA, and other trust funds. Armenia became a donor to the IDA in 2023. The World Bank said it remains committed to continuing its support to Armenia in its development path for reducing poverty on a livable planet.
