In 2010, IFC, together with the German Development Bank (KfW) and the Development Bank of Austria (Oesterreichische Entwicklungsbank, OeEB), launched the Microfinance Initiative for Asia (MIFA) Debt Fund to expand access to finance for micro-borrowers and low-income households across East Asia, South Asia and Central Asia. The facility sought to provide market-based debt financing, prioritizing local currency and longer-term financing, to microfinance institutions, particularly those that were smaller or less developed.

As part of this initiative, IFC undertook an equity investment in Amret Microfinance Institution PLC (Amret), the second-largest dedicated microfinance institution in Cambodia. According to IFC’s disclosure, Amret aims to offer a wide range of financial services to low-income individuals as well as small and medium entrepreneurs, contributing significantly to economic and social development in Cambodia. Through this investment, IFC intended to deepen its engagement in Cambodia’s microfinance sector, signaling strengthened confidence in its growth and impact.

In June 2025, CAO received a complaint concerning Amret, which is an IFC client, and LOLC Plc (LOLC), a Microfinance Initiative for Asia (MIFA) Debt Fund client. The complainants raised concerns about the harmful effects on their livelihood and well-being linked to the lending and debt collection practices of Amret and LOLC. They alleged that pressure and intimidation from credit officers compelled them to sell their land and assets and to borrow from informal money lenders, which increased their overall debt burden and caused emotional and health-related stress. The complainants also noted that local grievance mechanisms were ineffective.

In July 2025, CAO found the complaint eligible and initiated an assessment. During the assessment process, all the parties agreed to engage in a voluntary CAO-facilitated dispute resolution process to address the issues raised in the complaint. In December 2025, CAO released the Assessment Report available in English and Khmer. 

During the dispute resolution mission in December 2025, the complainants and LOLC reached a full and final agreement, the terms of which remain confidential. CAO will monitor implementation of the agreement for six months, through the end of June 2026. The parties issued a joint statement regarding this milestone. 

The remaining issues related to Amret MFI will be addressed separately, and the parties continue to engage in a CAO-facilitated dispute resolution process.