ArmInfo. The Armenian Parliament ratified an agreement on the provision of a $240 million loan by the International Bank for Reconstruction and Development to Armenia for the implementation of a project to develop the housing and mortgage market in Armenia. The draft law was presented at an extraordinary session of Parliament by Deputy Minister of Labor and Welfare Lusine Kocharyan.
She recalled that the state housing program for internally displaced families is estimated at $880 million, which includes funds from both the state budget and financial assistance from international partners.
According to the Deputy Minister, funding for the project amounts to $284.4 million, including $240 million in IBRD loans, $24 million in Global Concessional Financing Instrument grants, $10 million in Livable Planet Fund (LPF) grants, and $10 million in IBRD loan funds raised by the National Mortgage Company for the implementation of the second component of the project. The loan repayment term is 29 years, including a 10-year grace period. The loan is provided at a floating rate, currently standing at 5.53%.
The program itself, as Kocharyan noted, consists of three components: housing subsidies and institutional development support, development of the housing finance market, project management, monitoring, evaluation, and development of a complaints review mechanism.
Under the program, according to the Deputy Minister, cash assistance will be provided to 45,000 internally displaced persons, and 6,500 families will receive apartment purchase certificates.
As a reminder, the RA government, by its decree of May 16, 2024, approved and is implementing the State Housing Assistance Program for Families Displaced from Nagristic Karabakh. 6,125 families have already received certificates, 2,835 of which have already benefited from them. Over 6 billion drams have already been disbursed from the state budget under this program.
