Cambodia: Financial Intermediaries-04
Predatory lending practices, loss of land, loss of livelihood, food insecurity, threats to health, child labor
In February 2022, CAO received a complaint regarding the practices of six banks or microfinance institutions in Cambodia (ACLEDA, Amret, Prasac, Hattha Bank, LOLC and Sathapana) and four financial intermediaries that invest in those banks or MFIs (Microfinance Enhancement Facility (MEF), Microfinance Initiative for Asia Debt Fund (MIFA), Advans S.A. and North Haven Thai Private Equity Fund L.P.). These banks are linked to 18 active IFC projects supporting lending programs for micro, small and medium enterprises.
Two NGOs filed the complaint—the Cambodian League for the Promotion and Defense of Human Rights (LICADHO) and Equitable Cambodia (EC)—on behalf of the complainants in Cambodia. The complainants, who indicate that they have acquired loans from one or more of the six institutions mentioned above, allege that they have been harmed by predatory and deceptive lending practices, including threatening collection actions, purportedly committed by these institutions. Concerns raised in the complaint include loss of land, loss of livelihood, food insecurity and additional threats to health, and child labor.
CAO found the complaint eligible for further assessment in April 2022. The case is currently being assessed.
Note: An assessment does not entail a judgement on the merits of the complaint. Rather, the aim is to listen to people’s concerns, understand the different perspectives, and gauge whether it is possible to address the concerns through a collaborative process.
An assessment of the the details of the case is ongoing.
Status as of June 9, 2022