Closing of OECD Dialogue  

Artikel

Today, 24 January 2025, the mediation process between Oikocredit and the Cambodian League for the Promotion and Defense of Human Rights (LICADHO), Equitable Cambodia (EC) and FIAN Deutschland e.V. (FIAN Germany) (hereinafter collectively ‘the NGOs’), supported by the Dutch National Contact Point (Dutch NCP) for the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct came to a close. Prior to today’s mediation session, there were two other sessions – one in Bangkok, Thailand, in March 2024 and an online session in June 2024.

Today, 24 January 2025, the mediation process between Oikocredit and the Cambodian League for the Promotion and Defense of Human Rights (LICADHO), Equitable Cambodia (EC) and FIAN Deutschland e.V. (FIAN Germany) (hereinafter collectively ‘the NGOs’), supported by the Dutch National Contact Point (Dutch NCP) for the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct came to a close. Prior to today’s mediation session, there were two other sessions – one in Bangkok, Thailand, in March 2024 and an online session in June 2024.   

Throughout this process, Oikocredit has anchored its participation in its commitment to the welfare and wellbeing of microfinance borrowers in Cambodia. During this process, Oikocredit has met not only with our counterparty NGOs but with microfinance institutions, regulators, investors, official development finance institutions (DFIs) and other civil society organisations. With the support and facilitation of the NGOs, Oikocredit sought out and had discussions with borrowers who were experiencing distress because of over-indebtedness.   

We are grateful to all whom we met for their time and for their openness. We have gained further insight not only into the distress evident in the lives of many over-indebted borrowers today but also into the factors that have caused, triggered or led to situations of over-indebtedness. These factors range from a crisis triggered by an emergency, loss of employment, bad harvest, Covid-19 or business failure to lending malpractices and improper loan utilisation.   

We have also gained further insight into the financial inclusion sector in Cambodia today – a sector where commercial interests threaten to bury the original social impact intentions of microfinance and financial inclusion.   

Oikocredit’s funding represents less than 1% of the total assets in the microfinance sector in Cambodia, and so has limited influence. However, we strongly believe that microfinance can have a positive impact in helping people improve their lives – but only if it is implemented responsibly and ethically. Oikocredit continues to be committed to building a strong ecosystem for responsible, ethical microfinance and to sustainably address the urgent issues evident in the financial inclusion sector in Cambodia today.   

Oikocredit is committed to working with all stakeholders to develop sustainable solutions, and we continue to be involved in the following initiatives, among others:    

  • We are developing a framework for an independent mediation mechanism in Cambodia and a complementary solidarity and relief facility. Towards this end, we have contracted the services of a consultant who is currently contacting the various stakeholders in and outside of Cambodia to seek input. The mechanism will be developed in line with international standards, including the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. It will be fair, transparent, accessible, and built on ongoing dialogue and learning.   
  • We will operate a pilot of this mechanism and facility as a final phase of the current client empowerment programme (described below) following debt counselling. We will document this pilot process and use lessons learned and insights gained as input towards the operation of a more permanent mechanism after the conclusion of the pilot.   
  • We are collaborating on a programme of client empowerment that provides support to over-indebted borrowers through financial literacy training, the development and training of debt counsellors, and debt counselling.     
  • We continue to keep other stakeholders – including microfinance investment vehicles, investors, DFIs and regulators – informed of progress in this initiative in the hope of mobilising broad support and/or aligning with other actors’ initiatives.   

While the Dutch NCP process ends today, our work and commitment continue to support people suffering because of poverty and exclusion in Cambodia in improving their lives. We are confident that we do not travel this route towards a better future for low-income people and communities alone.   

As this mediation process concludes, the Dutch NCP will issue a Final Statement summarizing the case, outlining whether the OECD Guidelines were followed, and providing recommendations for their implementation moving forward if any.

For more information about Oikocredit’s work in Cambodia and around the world, please see our latest Impact Report.