Housing Finance (V)

Housing finance in developing and emerging countries  faces  various  challenges.  Issues related to affordability, lack of housing supply, backlog of renovation especially in regard to energy efficiency, monitoring and recovery practices, management of risks and long-term funding sources for mortgage loans  require  specialized  knowledge.  German  Financial Cooperation has been actively supporting the Central Bank of Armenia (CBA), acting via the German  Armenian  Fund (GAF)  and  now  the  National  Mortgage  Company (NMC), for many  years in developing mortgage products that effectively address these challenges.
For the Project “Housing V”, KfW will channel the credit funds of EUR 20 million from CBA/GAF in local currency to NMC, which will on lend the funds to partner financial institutions (PFI) in Armenia. The PFIs will use the loan funds for extending housing loans in local currency to low- and middle income households. For the implementation of the preceding four phases of the programme, KfW has provided in total over 50 million Euros loan. 

Overall objective: 
Support the further development of sustainable, needs-oriented and efficient housing finance. This shall contribute to the broadening and deepening of the financial system in Armenia. 

Specific objective:

  • Strengthen the specific capacity of NMC and its Partner Financial Institutions (PFIs) in the field of Energy Efficient (EE) Housing finance (including establishment of Environmental and Social Management  Framework at NMC), and rural mortgages.
  • Create of a suitable framework conditions of EE housing loans, incl. monitoring of archived results (energy savings and CO² emissions), as well as rural housing loans
  • Increase public awareness about benefits of EE housing and rural housing lending products which are offered by the Programme.
Central Asia
Project number: 
EV Consulting, ADG
2021-04-01 to 2022-12-31