In 2010, IFC, together with the German development bank Kreditanstalt für Wiederaufbau (KfW) and the Development Bank of Austria (OeEB), launched the Microfinance Initiative for Asia Debt Fund (MIFA) to expand access to finance for micro-borrowers and low-income households across East, South, and Central Asia. The facility aimed to offer market-based debt financing, with an emphasis on local currency and longer-term financing, to microfinance institutions (MFIs), particularly those that are smaller or less developed.

In July 2025, CAO received a complaint concerning LOLC Plc (LOLC), a MIFA client. The complainant, a borrower with LOLC, raised concerns about the negative impacts on their livelihood and well-being associated with LOLC’s lending and debt collection practices. They reported experiencing an increased debt burden and the loss of land and income-generating assets. The complainant further alleged that pressure and intimidation from credit officers caused severe mental and emotional distress, and that local grievance mechanisms were ineffective in addressing their concerns.

In August 2025, CAO found the complaint eligible and initiated an assessment.