Cambodia: MEF-08

Date Filed
11 Jul 2025
Status
Open
Phase
Assessment
Country
Cambodia

Case Tracker

Eligibility
July 12, 2024-October 28, 2024
Eligibility
Assessment
Status as of January 30, 2025
Assessment
Dispute Resolution
Compliance
CURRENT Status
Assessment
Status as of January 30, 2025

Complaint Overview

Complainant

Confidential 

Concerns

Predatory lending practices, loss of lands and property, loss of livelihood, threats and intimidation, increased debt burden, and potential reduction or loss of educational opportunities for children.

Cross-Cutting Issues
Coercion Children Loss of Livelihoods Violence / Abuse

Project Information

Region
East Asia & the Pacific
Institution
IFC
Name & Number
IFC Project Number: 27827
Company
KB Prasac Bank Plc (Prasac)
Sector
Financial Institutions
Category
FI
Commitment

US$150 million

Synopsis

Project Overview

IFC, in collaboration with the german development bank Kreditanstalt für Wiederaufbau (KfW) and the Development Bank of Austria (OeEB), created a global Microfinance Enhancement Facility (MEF) in 2009 to support microfinance institutions worldwide that may face funding shortfalls during periods of unprecedented financial stress. At the time of investment, IFC aimed to support over 100 microfinance institutions operating in more than 30 countries, including over 20 IDA countries.

Complaint

In July 2024, CAO received a complaint concerning KB Prasac PLC (Prasac), a client of MEF. The complainant, a borrower with Prasac, raised concerns about the harmful effects of the lending and collection practices on their livelihood and social well-being. The complaint alleged that they were pressured to sell their land outside of the legal foreclosure process at a lower market rate, resulting in the loss of their income-generating activity. They also alleged that they faced threats and intimidation from project employees and authorities, experienced a decline in their livelihood, and saw an increase in their debt burden.

Action

In October 2024, CAO found the complaint eligible and initiated an assessment. 

Status

The case is under assessment.

Status as of January 30, 2025.

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