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.

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. Finally, the complainants raised that they faced threats and reprisals. 

In October 2024, CAO found the complaint eligible and conducted an assessment. During the assessment, the complainant and the company agreed to engage in a voluntary CAO-facilitated dispute resolution process to address the issues raised in the complaint using a collaborative approach. The Assessment Report is available in English and Khmer.