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 conducted an assessment. During the assessment process, the complainant and LOLC agreed to engage in a voluntary CAO-led dispute resolution process to address the issues raised in the complaint. As part of the assessment mission in October 2025, CAO convened the first joint meeting between the parties, who agreed in principle on how to address the issues. 

In December 2025, CAO facilitated discussions between the parties, resulting in a dispute resolution agreement. While the specific terms of the agreement remain confidential, the parties issued a joint public statement regarding their mutually satisfactory outcome. In accordance with the CAO Policy, the case was transferred to CAO’s Dispute Resolution monitoring. 
In January 2026, CAO finalized the Assessment Report, available in English and Khmer.