"Mediation between NGOs and Oikocredit on Harms in Cambodia's Microfinance Sector Fails to Reach Agreement", 28 January 2025

The mediation process that followed a specific instance filed to the Dutch National Contact Point (NCP) … regarding harmful human rights abuses in Cambodia's microfinance sector has ended … without an agreement between the NGOs and Oikocredit.

We regret that mediation did not result in timely remedy and tangible relief for Cambodian borrowers. They desperately need and deserve a functioning grievance mechanism and financial compensation from international investors, who continue to profit as borrowers continue to suffer.

… Cambodian borrowers are still being harmed by widespread, systematic predatory and unethical lending practices of microfinance institutions (MFIs) and banks across Cambodia, including those Oikocredit has previously invested in and those it continues to invest in. It is clear to us that Oikocredit's investments contributed to harms and failed to comply with the OECD Guidelines. Investors such as Oikocredit have failed to meaningfully contribute to remedy for those harms. It is disappointing and frustrating that an agreement could not be reached to address these problems.

While we believe Oikocredit has a responsibility to act, this responsibility also applies to other investors in the sector. It is long past time for all international investors to acknowledge the harms on the ground and provide meaningful remedy to help suffering borrowers…

In its statement announcing the end of the NCP process, Oikocredit pledged to develop a framework for an independent mediation mechanism and a solidarity and relief facility, in-line with international standards, including the UN Guiding Principles on Business and Human Rights... We regret this pledge lacks any specifics around how much money would be provided for relief, or when such a mechanism will begin operating...