Housing loan scheme for Artsakh Armenians falling short, ombudsman says

The Armeniam government has approved a €250 million loan and a €15 million grant from the Asian Development Bank to finance the state housing program for displaced families from Artsakh (Nagorno-Karabakh), but the program is proving ineffective and risks leaving most refugees without permanent homes, Artsakh Human Rights Defender Gegham Stepanyan said.

The parliament on Tuesday ratified the loan agreement under the THRIVE housing reforms program, which will finance Armenia’s flagship housing scheme for forcibly displaced Artsakh Armenians. The plan provides state-backed certificates that families can use to secure bank loans, with the government covering principal and interest over 10 years.

However, only a fraction of eligible families has been able to buy homes so far, Gegham Stepanyan told Panorama.am on Wednesday.

“Out of roughly 25,000 displaced families, only about 3,600 have received certificates and just 1,600 have actually managed to use them to purchase housing,” Stepanyan said. “The gap between certificates issued and certificates used shows that families are unable to realize their rights in practice.”

A government official told the parliament that around 1,600 families have bought homes and another 2,600 have received certificates.

Stepanyan said the scheme, introduced in May 2024 and later amended, contains structural flaws that make it unworkable for many families. Smaller households of one to three people cannot buy a home with the assistance provided, while those seeking housing in Yerevan or nearby regions often face prices far above the program’s limits.

“As a result, people are forced to seek additional loans, but many do not have sufficient income or creditworthiness,” he said. “That is one of the main reasons for the very low uptake.”

He also criticized the program’s geographic incentives, which offer higher support for housing in remote or border regions.

“The government wants to push displaced people towards border areas, but the reality is that about 60% of them currently live in Yerevan and surrounding regions because that’s where the jobs are,” Stepanyan said. “If a family moves to a border village where there is no work, how are they supposed to survive?”

During parliamentary debates, opposition lawmakers also alleged poor treatment of Artsakh Armenians at passport offices. Stepanyan said he had not received complaints of systematic mistreatment, though he acknowledged long-standing service problems.

“I have not recorded cases of mistreatment involving Artsakh Armenians,” he said. “There have been instances where officials demanded documents not required by law and we intervened to resolve the cases.”

Despite repeated meetings, expert discussions and protests, including a large rally in March, Stepanyan said the authorities have shown little willingness to revise their approach.

“My impression is that the government will not offer Artsakh Armenians anything beyond this flawed program,” he said. “We present our arguments and evidence, but they do not translate into actual policy changes.”

“The situation for displaced people is extremely difficult,” he added. “Dialogue exists, but what is the value of meetings if nothing changes in the decisions that affect people’s lives?”