Government to Secure $250 Million Loan for Housing Support of Families Displaced from Artsakh

Armenia will engage a $250 million loan from the Asian Development Bank for financing the state support program aimed at housing families forcibly displaced from Artsakh.

The bill ratifying the loan agreement between the Republic of Armenia and the Asian Development Bank for the "Housing Reforms for Improved Resilience and Empowerment" (THRIVE) program was presented in the National Assembly by Deputy Minister of Labor and Social Affairs David Khachatryan.

"The aim is to develop a sustainable, resilient, and inclusive housing system in Armenia, supporting the socio-economic integration and well-being of families forcibly displaced from Artsakh. The program's funding will be provided through resources from the Asian Development Bank and the Global Fund for Inclusive Financing. The program plans to allocate a $250 million loan from ADB and grant funding from the Global Fund for Inclusive Financing totaling $16.45 million, which will co-finance the loan program," Khachatryan stated.

The program aims to finance the state housing assistance program for families forcibly displaced from Artsakh, approved by the government back in 2024. Families meeting the requirements can apply to receive certificates and purchase homes in their preferred locations.

The Deputy Minister noted that as of now, 3,810 families have applied and received housing certificates, with 1,631 of them having purchased homes.

The amount of loan provided to Armenia is $250 million, with a disbursement deadline set until December 31, 2030. The loan is granted for a period of 27 years, with the first 10 years being a grace period. The interest rate on the loan is linked to the SOFR rate, which on October 30, the agreement signing date, was 4.04% + 0.8% margin, resulting in an effective rate of 4.84%.