ADB Approves $250 Million Loan to Support Armenia's Social Housing Policy

Strategic Insights -

The Asian Development Bank (ADB) has approved a $250 million results-based loan to support Armenia's social housing policy, providing long-term solutions for ethnic Armenian refugees who fled to the country in September 2023. The initiative, known as the Transformative Housing Reforms for Improved Vitality and Empowerment (THRIVE) Program, aims to improve social and economic resilience for vulnerable households across the nation.

Key Takeaways:

  • The ADB has approved a $250 million results-based loan to support Armenia's social housing policy, with a focus on providing long-term solutions for ethnic Armenian refugees.
  • The loan will finance mortgage schemes for low- and middle-income families, rental subsidies for displaced households and vulnerable groups, and strengthened social housing governance through new policies and institutional reforms.
  • The THRIVE Program aims to improve social and economic resilience for vulnerable households, with a focus on women-headed households and those living in earthquake-prone areas.
  • The program will also strengthen capital markets to attract institutional investors, creating a more robust financial system for housing development.
  • The loan and accompanying grant will support harmonization of social benefits, development of a long-term housing strategy, seismic resilience upgrades, and enhanced livelihood opportunities for vulnerable households.

Statistics:

  • The loan amount is $250 million.
  • The grant amount is $16.45 million.
  • The program aims to support approximately 109,000 ethnic Armenian refugees.
  • Armenia has received more than $2 billion in loans, grants, and technical assistance from the ADB since joining in 2005.
  • The THRIVE Program is expected to deliver long-term benefits by fostering economic participation, financial literacy, and community resilience.

Sources:

  • The Asian Development Bank (ADB)
  • ADB's Country Operations Head for Armenia, Luke Fochtman
  • Armenia's Decree N 710-L
  • Global Concessional Financing Facility