“ImTaniq” Housing Finance Program Has Been Launched
It has been several months since “Im Taniq” housing finance program was launched which is being implemented in cooperation with the “German-Armenian Fund” and the “National Mortgage Company”. The amount of funding is 20 million euros, provided by KfW Development Bank within German-Armenian intergovernmental cooperation.
The program aims to promote energy-efficient construction in Armenia, as well as to promote the development of an energy-efficient housing stock and the mortgage market in general in the country.
Withing the framework of the program low- and middle-income residents of the regions and Yerevan have an opportunity to receive house purchase, renovation and single-family house construction loans at very favourable conditions. One of the key benefits of the program is that energy efficiency loans are offered at lower interest rates and on simplified terms than conventional housing loans. Since the launch of the program, more than 13 million euros of loans have already been provided, of which about 32% are loans for energy efficiency.
The loans are provided by partner financial institutions, such as Armbusinessbank, Ardshinbank, Evocabank, Armeconombank, IDBank, Byblos Bank, Inecobank, Armswissbank, Converse Bank and ACBA Bank, as well as Kamurj, First Mortgage Company, Fast Credit and Global Credit universal credit organizations.
One of the long-term goals of the program is to encourage the population to adopt energy saving behavior in general, as well as to apply energy efficiency measures, which will lead to the reduction of carbon dioxide (CO2) emissions and increase the energy efficiency of apartments / houses leading to significant reduction in utility bills.
National Mortgage Company (NMC): The National Mortgage Company is registered with the Central Bank of Armenia as a refinancing credit institution in 2009. The mission of the company is to provide liquidity, stability and affordability to the mortgage market in Armenia via achieving its goal to create conditions to make mortgage loans affordable for low- and middle-income families across Armenia and improve those families’ housing conditions. NMC cooperate with banks and credit organizations providing them long-term refinancing loans with low interest rates, which, in turn, makes mortgage loans affordable for households. The sole shareholder and founder of the company is the Central Bank of Armenia (https://nmc.am/en).
Program Management Unit of “German-Armenian Fund” (PMU GAF) was established by the Central Bank of Armenia in 2001. The sole founder of the institution is the Central Bank of Armenia (CBA). The main objective of the activities of PMU GAF is the implementation and management of loan programs in accordance with the loan agreements and the separate agreements forming an integral part of them concluded between the CBA and KfW bank within the framework of the intergovernmental agreements between the governments of the Republic of Armenia and the Federal Republic of Germany (https://gaf.am/).