Since 2021, IFC supported Cambodia’s banking sector through multiple investments in ACLEDA Bank Plc., Hattha Bank Plc. (HTB), and the financial intermediary North Haven Thai Private Equity Fund L.P., which includes ACLEDA as one of its subprojects. These investments aimed to strengthen financial institutions and expand access to finance for micro, small, and medium enterprises (MSMEs), including women-owned MSMEs (WMSMEs). They also sought to reinforce the banks’ capital base, promote digitalization, and enhance financial inclusion to support economic recovery and income generation.

In June 2025, CAO received a complaint from the Cambodian League for the Promotion and Defense of Human Rights (LICADHO) on behalf of clients of ACLEDA Bank Plc. and Hattha Bank Plc. (HTB). The complaint raised concerns about potential harm caused by the banks’ microfinance lending practices. The complainants reported negative impacts on their livelihoods, food security, and health due to growing debt burdens and alleged threats and intimidation by bank employees during loan collection. They further stated that, under pressure from bank officers, they borrowed from both formal and informal lenders to repay existing loans, which increased their overall debt burden. The complainants also reported that local grievance mechanisms were ineffective.

In August 2025, CAO found the complaint eligible and conducted an assessment. During the assessment process, ACLEDA Bank and the complainant engaged directly and satisfactorily resolved the issues related to ACLEDA’s part of the complaint. As a result, CAO concluded this aspect of the complaint. Hattha Bank and the complainant agreed to participate in a voluntary, CAO-led dispute resolution process to address the issues raised in the complaint concerning HTB. In accordance with CAO Policy, the case was transferred to CAO’s Dispute Resolution function to address the remaining issues.

In January 2026, CAO published the Assessment Report, which is available in both English and Khmer. 

Between January and June 2026, two joint sessions were held as part of the dispute resolution process. During the second joint session, held in June 2026, the parties reached a full and final agreement, with implementation of the agreement beginning on June 27, 2026. 

The details of the agreement remain confidential; the parties issued a Joint Statement (available in English and Khmer) confirming a mutually satisfactory outcome. CAO will monitor the implementation of the agreement for 18 months, through December 2027. Following the initial six-month period, CAO will consult with the parties to determine whether the monitoring period should be shortened or continue in accordance with the terms of the agreement.