The impact of our KfW housing finance project in Armenia

Wednesday, November 16, 2022

In Armenia’s urban economy, buildings are one of the major sources of greenhouse gas emissions. Thanks to the “Im Taniq” housing finance program activities, the construction of energy-efficient districts has increased, which also contributes to the demand for financing of energy-efficient mortgage. 

Our "Im Taniq" housing finance program, launched in 2021 and implemented by the National Mortgage Company (NMC) has been completed. We implemented the program in cooperation with the German-Armenian Fund. The EUR 20 million financing was provided within the framework of the German-Armenian intergovernmental cooperation through KfW Development Bank. 

14 commercial banks and credit organizations participated in the program. Loans at affordable interest rates were provided to 643 borrowers for the purchase and renovation of apartments and construction of family houses. Nearly 40% of the loan amount was allocated to energy efficient (EE) housing projects (purchase of new EE apartments, individual house construction and renovation) which was one of the most important components of the program. 

Edmond Vardumyan, the CEO of the National Mortgage Company, notes: "Within the frames of the program we have established an energy efficiency standard for newly constructed buildings. In cooperation with several partners, including UNDP, we managed to persuade real-estate developers to obtain energy passports for new construction projects. I am glad that the construction of energy-efficient districts and the demand for energy-efficient apartments and houses have increased in our country." 

AFC team leader, Sebastian Faryniarz, expressed his gratitude to the partners of the project. He noted: “Im Taniq is one of the programs which set a strong foundation to further development of energy efficient housing financing in Armenia. The success of the program demonstrates that Armenia can have leading positions in CO2 emission reduction in the region." 

During the program an innovative web-based tool was developed allowing assessment of energy efficient projects and measuring the climate impact of the investments. Apart from that, 209 bank employees from 14 partner financial institutions and NMC staff were trained in assessment of energy efficient housing projects.