"Cambodia: World Bank’s IFC Dismisses Findings on Microfinance Issues", 26 June 2026

Human Rights Watch has stated that the World Bank’s International Finance Corporation (IFC) has rejected findings from an ombudsman concerning damages tied to investments in Cambodia’s microfinance sector. This rejection, …, represents a significant failure in accountability…

In response to a complaint lodged in 2022 by 18 microfinance borrowers in Cambodia, the Board of Directors of the IFC stated that it would initiate a plan allowing complainants to utilize existing grievance mechanisms in the country. Their announcement indicated no violations of the IFC’s policies regarding environmental and social sustainability.

The Compliance Advisor Ombudsman (CAO) released its report …, which examined the allegations in the 2022 complaint. This extensive report outlined significant harm directly related to several areas in which the IFC did not comply with its policies, including failing to protect vulnerable populations and ensure adequate grievance mechanisms were in place.

Cambodia currently faces the highest per capita microcredit debt globally, with predatory lending practices leading to severe consequences, such as forced land sales, starvation, disruptions to education, and various labor abuses, including the coercive sale of land.

Indigenous communities are especially affected, with many having limited literacy in Khmer…

The Ombudsman found that the IFC’s failures to adhere to its performance standards resulted in similar harms experienced by indigenous groups. There were significant risks identified that common lands might be accepted as collateral without community consent, leading to detrimental impacts on their access to resources and culture.

…, the IFC’s proposed plans lack these crucial commitments. Instead, they suggest restructuring loans or deferring repayments. Critics, including the Ombudsman and Human Rights Watch, argue these measures are insufficient and point out past failures. While the report mentions the potential establishment of a “financial ombudsman,” it lacks clarity on how it will adhere to international standards…