Tag Archives: loans

On 26 February 2015 the Armenia-wide housing finance programme for energy-efficient renovation, “Jerm Ojakh”, began in Yerevan with a launch event.
This programme was developed within the framework of the “Social Housing Energy Efficiency Financing” programme, with a purpose to enable low- and middle-income households to renovate their buildings, improve living conditions and quality of life, reduce residential energy expenses, and promote the development of energy-efficient housing in towns and villages in Armenia. Jerm Ojakh is being implemented across Armenia by the National Mortgage Company, with financial support from the Agence Française de Développement. The technical assistance component is being funded by the EU Neighbourhood Investment Facility.
ARS_2235The Representative of the Agence Française de Développement, Bertrand Nora, stated that this is not their first programme in Armenia, and that there were also several ongoing projects in other sectors: ‘We are working in several countries in the world, one of which is Armenia. I am very happy to see that lot of things are improving. Our mandate in this country is the same as in this region, which is to support green and inclusive growth. That means that growth should respect the environment, climate change and also social issues”.
Hayk Voskanyan, CEO of the National Mortgage Company, presented the aims of the programme and how its advantages could be useful and important for Armenians: ‘The main product of the credit line is affordable, dram-dominated loans offered to Armenian households for energy-efficient renovation. All households in Armenia who have a regular income can apply for the micro-renovation loans. The amount is AMD equivalent to €500-€4,000, and interest rate is 13%-14%. Maturity is 5 years (minimum) and the grace period is 6 months-1 year without any mortgage. There is also possibility for grant of 10% of the loan amount. Besides micro-loans, there is also an energy-efficient loan. All households in Armenia who have a regular income can apply for these loans, which can be AMD equivalent to €4,001-€10,000, with an interest rate of 11%. Maturity is 10 years (minimum), the grace period is 6 months-2 years without any mortgage, and the possible grant is 5% of the loan’.
ARS_2237Armenian citizens can apply for these loans if they have a main income source in Armenia and own either an apartment, single-family house, multi-party house, or country house. The micro-loan can be used to renovate apartments, houses and other residential buildings, or to install additional equipment to improve the energy efficiency of buildings. Technical assistance funds are being provided by the European Union Neighbourhood Investment Facility. Each loan offers a 5%-10% cashback grant provided by the EU Neighbourhood Investment Facility upon fulfillment of certain energy-efficiency criteria. Within the framework of the project, the Agence Française de Développement will provide the National Mortgage Company with a €10m loan. The National Mortgage Company will then use this loan to refund mortgage loans provided by its partner financial companies. The loan will be complemented by a grant of €1.5m, provided by the European Union, for technical assistance.