AIIB Watch Cases

Emergency and Crisis Response Facility

Status: Approved (but loan agreement not signed yet)
Timeframe: 2022-2023
Area: Cambodia
AIIB Investment Amount: US$ 100 million
Total Project Cost: Up to US$ 100 million

E&S Category: FI

Project Details: The project is a non-sovereign backed loan to ACLEDA Bank (ACLEDA), to expand its lending to eligible private sector micro, small and medium-sized enterprises (MSMEs) in Cambodia.

Resettlement: The frequent use of land titles as collateral for microloans in Cambodia, combined with reports of predatory lending and abusive collection practices, has been widely criticized for dispossessing borrowers of their land without the use of legal foreclosure methods and contributing to poverty and involuntary resettlement. Reported abuses include the microloan activities of ACLEDA Bank Plc., which this AIIB project will be funding.

Organizations monitoring: Equitable Cambodia(link is external)Cambodian League for the Promotion and Defense of Human Rights (LICADHO)(link is external)

AIIB interactions to date: In November 2022, a number of CSOs released a joint statement(link is external) to ensure that necessary reforms are made to Cambodia’s microfinance sector prior to any new investments, including the return of land titles to borrowers and remuneration for victims of predatory lending and collection practices. In a response statement(link is external), AIIB representatives acknowledged “systemic issues” in the market and stated that those issues are under “internal review.”

Further information: AIIB Page(link is external); China.Table Article (German)(link is external)Cambodia News Today (Chinese)(link is external)MFICambodia (Khmer, English, German)(link is external)südostasien (German)(link is external)

 

Last update: 31.12.2023

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