AFC increases the share of energy efficient mortgage loans in Armenia

In Armenia’s urban economy, buildings are one of the major sources of greenhouse gas emissions. At the same time, they represent significant potential to save energy, through financing energy efficiency construction through international and local financial institutions.

The “Im Taniq” housing finance program initiated its active lending activity in September 2021. Within nine months, EUR 26.3 million were allocated to 683 borrowers. More then 40% of the loan amount was allocated to energy efficient housing projects, i.e. purchase of new energy efficient apartments, as well as individual house construction and renovation.

Edmond Vardumyan, director of the National Mortgage Company (NMC), says that such a high rate of energy-efficient loans indicates that residents in Armenia started to attach more importance to the energy efficiency of apartments and houses. Thanks to the program activities, the construction of energy-efficient districts has increased, which also contributes to the demand for financing of energy-efficient mortgage.

Over 50% of the loan amount, which represents over EUR 14 million was utilized for financing mortgage loans in the regions of Armenia (outside of the capital Yerevan). Also it can be observed that the demand for energy efficient financing is growing in rural areas.

Sebastian Faryniarz, team leader of AFC, expressed his gratitude to the project partners: „The success in implementation of the program was possible due to the professionalism and high quality of the work of our program partners, including the National Mortgage Company, the German-Armenian Fund and the partner financial institutions. In addition to the positive economic impact we have achieved, a significant environmental impact, in terms of reduction of CO₂ emissions, was generated by the residential sector. I extend my gratitude to our partners for the excellent co-operation.”

The “Im Taniq" housing finance program is being implemented in cooperation with the "German-Armenian Fund" and the National Mortgage Company. 14 partner financial institutions implement the program. The EUR 20 million funding is provided by KfW Development Bank within German-Armenian intergovernmental cooperation.

For further information, please contact Elena.Yunatska [at] afci.de