Government to Offer Cheap Loans for Renovation Purposes

The Armenian government will provide cheap loans to citizens for the energy-efficient renovation of their apartments and houses. Armen Ghulyan, the head of the Urban Development Committee, announced this during today’s government meeting, presenting a draft decision regarding the program that will be implemented with government subsidies.

“The loan limit for energy-efficient renovation is set at 70,000 drams per square meter for apartments in multi-apartment buildings, but no more than 7 million drams in total. For individual residential houses, it amounts to 100,000 drams per square meter, with a cap of 10 million drams. The loans will be issued in Armenian drams at a maximum interest rate of 14%, with a repayment term of up to 84 months,” said Ghulyan.

Moreover, the government will fully subsidize the interest rate for residents of border communities, meaning they will receive the loan at 0% interest. In non-border villages, the loan will be offered at 2% interest, in urban areas at 3%, and in Yerevan at 5%.

According to the government’s decision, energy-efficient renovations are defined as those involving the installation or replacement of alternative energy sources, energy-efficient construction materials, energy-saving heating systems, and the acquisition of exterior doors and windows. In the case of individual residential houses, it also includes thermal insulation works for external walls and enclosing structures.

The government’s decision will apply to loans that are issued from the date of entry into force until July 1, 2023.

Prime Minister Nikol Pashinyan emphasized the importance of the decision not only from the standpoint of energy efficiency and housing renovation but also for job creation. “In this way, we are also creating potential job opportunities for our compatriots who this year, for various reasons, may not be able to go abroad for work,” he stated. Additionally, the program is expected to boost the local production and sale of building materials.