Cambodia: 16 borrowers allegedly affected by predatory microfinance lending reject an informal resolution offered by IFC, citing concerns over safety, lack of trust
"MFI Complainants Reject IFC’s Resolution Offer, World Bank Hopes They Reconsider Decision", 29 August 2026
Sixteen people, who took out microfinance loans that resulted in negative impacts on their lives and livelihoods in Cambodia, have refused to take part in an informal resolution offered by the World Bank’s International Finance Corporation (IFC), citing safety concerns and lack of trust. In the meantime, the World Bank has said that the IFC is reviewing appropriate steps for those who rejected the offer and hopes they will reconsider…
Civil society groups Licadho and Equitable Cambodia, which represented the affected citizens, some of whom are indigenous people, also decided to step back from the new mechanism. Instead, they handed over the contact details of two other complainants to the IFC…
An investigation by CAO ensued, leading to a 188-page report in October 2025 detailing the IFC’s failure to follow its own compliance, resulting in system-wide harm to Cambodia’s microfinance sector, including the loss of livelihoods, food insecurity, health problems, family breakups, impacts on indigenous communities, threats, and intimidation…
… When asked why the plan focuses on debt relief and mediation rather than direct financial compensation, the World Bank group spokesperson explained that the IFC is “committed” to providing concrete measures to resolve issues arising from its microfinance portfolio in Cambodia.
The spokesperson added that the plan directs resources toward mechanisms which are most likely to reach people who continue to experience financial difficulty, or are using independent facilitators to restructure packages, on a case-by-case basis.
… The spokesperson, however, expressed disappointment over Licadho and Equitable Cambodia ending their participation, adding that civil society remains a “critical part of accountability”.
IFC and World Bank would continue engaging communities through other channels, support responsible lending among MFIs, monitor outcomes, report on the Special MAP’s implementation, and hope to reopen dialogue with all stakeholders, including those who have stepped back…