World Bank approves $250m project to expand affordable housing for refugees in Armenia

By combining social protection with housing finance reforms, the project aims to expand access to housing credit, catalyze private investment, and move Armenia toward a more resilient, inclusive, and sustainable housing system.

The World Bank’s Board of Executive Directors has approved US$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 package includes a US$24.4 million grant from the Global Concessional Financing Facility (GCFF) and a US$10 million grant from the International Bank for Reconstruction and Development (IBRD) Surplus-Funded Livable Planet Fund, underscoring strong international support for Armenia’s response to refugee housing needs.

Supporting Refugees While Strengthening Housing Systems

The project is designed to deliver both immediate relief and long-term structural improvements. It will support the Government of Armenia’s Refugees Housing Support State Program by providing rental assistance to more than 40,000 refugees, helping families secure stable accommodation as they transition out of displacement.

In addition, the project will enable approximately 6,500 refugee households to acquire permanent homes through mortgage subsidies, significantly improving housing security and social integration while easing pressure on the rental market.

“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.”

Boosting the Mortgage Market and Institutional Capacity

Beyond direct support to households, the project will strengthen Armenia’s housing finance ecosystem. It includes financial support to the National Mortgage Company (NMC) to facilitate refinancing for commercial banks offering mortgages under the housing program. This is expected to improve liquidity, reduce borrowing costs, and encourage private sector participation in the mortgage market.

The project will also fund upgrades to the management systems of the Refugee Housing Support State Program, enhance housing policy frameworks, and strengthen NMC’s corporate governance, contributing to greater transparency, efficiency, and sustainability in the sector.

Implementation will be led by the Ministry of Labor and Social Affairs and the National Mortgage Company, with strategic oversight provided by a government steering committee.

Coordinated International Support

The initiative complements parallel assistance from other development partners, including the Asian Development Bank, and aligns with ongoing efforts by international organizations such as UNHCR, UNDP, IOM, and civil society groups. Together, these partners are supporting humanitarian assistance, refugee integration, and livelihood opportunities across Armenia.

By combining social protection with housing finance reforms, the project aims to expand access to housing credit, catalyze private investment, and move Armenia toward a more resilient, inclusive, and sustainable housing system.

Long-Term World Bank Engagement in Armenia

To date, the Global Concessional Financing Facility has provided Armenia with US$40.40 million in grants, enabling access to US$350 million in concessional World Bank loans to support host communities and refugees in sectors including education, housing, and refugee policy. The GCFF contribution for this project is supported by the governments of Japan, the Netherlands, and Sweden.

Since 1992, the World Bank has provided Armenia with around US$3 billion in financing, including a current portfolio of approximately US$420 million in investment lending, alongside grants, analytical work, and technical assistance. Armenia also became a donor to the International Development Association (IDA) in 2023, reflecting its growing engagement in global development efforts.