Housing Financing V

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The objective of the FC module is to contribute to the development of the Armenian financial sector by providing refinancing funds through the provision of long-term refinancing for Armenian banks in local currency. The project is intended to contribute to achieving the development cooperation program objective of improving the framework conditions for sustainable economic development with a focus on MSMEs. The FC funds are to be used to finance residential investments by private individuals with low and middle incomes. The borrower is the Armenian Central Bank (CBA). The project sponsor will be the National Mortgage Company (NMC). The direct target group of the program are the Armenian commercial banks participating in the program as financial institutions (FIs), which can open up new business areas through the long-term financing of the projects. The indirect target group are private households with low to middle incomes. Households with very low incomes are not part of the target group because their ability to repay is limited. As part of Phase V, the two innovative housing loan products from the previous phase, a loan product for investments in rural areas and a loan product for renewable energy investments, are to be further developed. Due to the ongoing high demand, the financing of the purchase of housing in general from the previous phases is also to be continued. As part of the accompanying measure, consulting services are to be financed, among other things, which will train and support the Armenian partners in terms of planning, reviewing, approval and implementation of financed individual projects.