Social & Energy Efficiency Housing Finance Program

AFD launched a Social & Energy Efficiency Housing Finance Program with the financial support of the European Commission (Neighborhood Investment Facility East). The purpose of this program was to stimulate renovation for housing for lower and middle income populations, particularly in rural areas and secondary cities (Yerevan city center excluded)

AFD signed a Financial Credit Agreement for providing a concessional credit line of 10 M EUR to National Mortgage Company (NMC) who then refinanced, by lots, local currency denominated (or AMD) sub loans submitted by Partner Financial Institutions (PFIs) in accordance with a Master Credit Agreement designed by KfW. Given the amount of the credit line, the sub loans targeted approximately 3,000 households and financed household renovation outside Yerevan city center. It supported additional investments from households that were not eligible to medium or long term loans for such purposes. It was planned to generate a demand to local suppliers estimated to 10 M EUR of new equipment partly produced locally (wall isolation, windows, doors, roof, etc.).

The Consultant mainly supported the NMC and the participating financial institutions and banks (PFIs) to implement and monitor the project and made green micro housing finance issues sustainable in the banking community and in the country.

Type of Services provided:

• Value the energy performance of households renovation investments;
• Develop awareness and capacity building of the NMC and inside the banking sector on energy efficiency issues;
• Develop awareness and capacity building of NMC and inside the banking sector on housing microfinance issues;
• Set up bonuses disbursement scheme compliant with NIF project description and EU rules;
• Add operational value to the on-going institutional initiatives;
• Assess the overall Program performance on a quarterly basis and make relevant recommendations and adjustment / improvements to the Program.

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