Cambodia: MEF-08
Case Tracker
Complaint Overview
Confidential
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.
Project Information
US$150 million
Synopsis
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. 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.
In October 2024, CAO found the complaint eligible and initiated an assessment.
The case is under assessment.
Status as of January 30, 2025.