ADB Approves $250M Loan to Boost Armenia’s Social Housing and Refugee Aid

The Asian Development Bank (ADB) has approved a $250 million results-based loan to support Armenia’s social housing policy and provide 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, will also improve social and economic resilience for vulnerable households across the nation.

In addition to the loan, ADB will administer a $16.45 million grant from the Global Concessional Financing Facility, further strengthening Armenia’s ability to meet urgent housing and livelihood needs.

Addressing a Refugee Crisis with Long-Term Solutions

The program is designed to respond to the needs of approximately 109,000 ethnic Armenian refugees, many of whom continue to face precarious living conditions following their displacement. By combining mortgage financing, rental subsidies, and strategic policy reforms, THRIVE seeks to provide sustainable housing solutions while also stimulating economic recovery and social stability.

“The development of Armenia's housing finance sector is essential for the country’s economic growth, poverty reduction, and inclusiveness goals,” said Luke Fochtman, ADB’s Country Operations Head for Armenia. He emphasized that ADB’s support will help the government implement a strategic, measurable, and relevant approach to social housing.

Financing Mechanisms and Policy Support

Under Armenia’s Decree N 710-L and the broader national social housing policy, the loan will finance:

• Mortgage schemes for low- and middle-income families.

• Rental subsidies to assist displaced households and vulnerable groups.

• Strengthened social housing governance through new policies and institutional reforms.

The program will also focus on building a resilient and inclusive housing finance system, with greater involvement of private banks and capital markets to mobilize long-term funding.

Key Initiatives of the THRIVE Program

The loan and accompanying grant will support several transformative measures, including:

• Harmonization of social benefits to ensure fair and consistent support for households.

• Development of a long-term housing strategy, tailored to address future demographic and economic needs.

• Seismic resilience upgrades for beneficiary homes, crucial in earthquake-prone Armenia.

• Enhanced livelihood opportunities, particularly for households headed by women, integrating economic empowerment with housing support.

• Strengthening capital markets to attract institutional investors, creating a more robust financial system for housing development.

ADB’s Broader Role in Armenia

Since joining ADB in 2005, Armenia has received more than $2 billion in loans, grants, and technical assistance. ADB has supported projects in infrastructure, energy, social services, and private sector development, positioning itself as a key partner in Armenia’s modernization and resilience-building efforts.

A Step Toward Inclusive and Resilient Growth

The THRIVE program not only addresses an immediate humanitarian challenge but also lays the foundation for inclusive economic development. By combining housing reform, financial sector strengthening, and social inclusion policies, ADB and Armenia aim to create a framework that will provide security, dignity, and opportunities for refugees and vulnerable families.

This initiative is expected to deliver long-term benefits by fostering economic participation, financial literacy, and community resilience, ensuring that housing reform becomes a catalyst for national stability and prosperity.