IFC, in collaboration with the German development bank Kreditanstalt für Wiederaufbau (KfW) and the Development Bank of Austria (OeEB), created a global Microfinance Enhancement Facility (MEF) in 2009 to support microfinance institutions worldwide that may face funding shortfalls during periods of unprecedented financial stress. At the time of investment, IFC aimed to support over 100 microfinance institutions operating in more than 30 countries, including over 20 IDA countries. 

In July 2024, CAO received a complaint concerning KB PRASAC Bank Plc (PRASAC), an MEF client. The complainant raised concerns about the harmful effects on their livelihood and well-being linked to the lending and debt collection practices of PRASAC. The complainant also alleged that their family experienced negative impacts on their livelihood, including the loss of income-generating property and an increased debt burden as they had to take out additional informal loans to meet their repayment obligations to PRASAC. Finally, the complainants raised that they faced threats and reprisals. 

In October 2024, CAO found the complaint eligible and initiated an assessment. During this process, the parties reached a partial agreement, which was documented in the CAO Assessment Report released in March 2025. The Assessment Report is available in English and Khmer.

In August 2025, the remaining issues were resolved in a second joint session, during which the parties reached a full agreement. Implementation began on August 5, 2025. The details of the agreement remain confidential. CAO will monitor its implementation for 24 months, through August 2027, with the possibility of an extension.