IFC has supported Cambodia’s banking sector through investments aimed at strengthening financial institutions and expanding access to finance for micro, small, and medium enterprises (MSMEs), including women-owned MSMEs (WMSMEs). In 2021, IFC provided a seven-year subordinated loan of up to US$40 million to Hattha Bank Plc. (HTB), consisting of IFC’s own account investment of up to US$10 million and up to US$30 million mobilized from other investors. The financing aimed to strengthen the Bank’s resilience amid the COVID-19 pandemic to support the HTB’s long-term strategy to expand MSMEs and WMSMEs lending by economic activity, job creation, and post-crisis recovery in Cambodia. 

In July 2025, CAO received a complaint from the Cambodian League for the Promotion and Defense of Human Rights (LICADHO) on behalf of a borrower from HTB. The complaint raised concerns about the negative effects of the Bank’s lending and debt collection practices on the borrower’s livelihood and well-being, alleging that loan officers used threats and intimidation, leading to property loss and growing debt. The complainant also stated that, under pressure from bank staff, they took additional informal loans to repay existing debts to HTB, further worsening their financial situation. 

In September 2025, CAO found the complaint eligible and conducted an assessment. During the assessment process, the parties agreed to engage in a voluntary CAO-led dispute resolution process to address the issues raised in the complaint. In accordance with the CAO Policy, the case was transferred to CAO’s Dispute Resolution function. 

In February 2026, CAO released the Assessment Report available in English and Khmer.

In January 2026, as part of the assessment phase, CAO convened the first joint meeting between the parties, during which they agreed in principle on how to address the issues raised in the complaint. 

In June 2026, the complainants and HTB reached a full and final agreement through dispute resolution. The details of the agreement remain confidential; the parties issued a Joint Statement (available in English and Khmer) confirming a mutually satisfactory outcome. Following the agreement reached by the parties, CAO will monitor its implementation through December 2026.