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Unternehmensantwort

5 Dez 2022

Autor:
Asia Infrastructure Investment Bank

Asia Infrastructure Investment Bank's response to allegations of worsening human rights violations in loans approval

[...]

AIIB takes allegations of human rights violations related to the projects it finances extremely seriously, and AIIB is open to dialogue with all concerned stakeholders, and to continuous improvement of its policies and practices.

…, in connection with the Board approval of loan facilities to PRASAC and ACLEDA, AIIB received concerns raised by civil society organizations (CSOs) regarding allegations of predatory lending and abusive collection practices, among others, in the microfinance sector in Cambodia, with particular emphasis on the risks to and impacts on vulnerable people, including Indigenous Peoples stemming from these allegations.

AIIB spoke with the concerned CSOs ... AIIB took the issues raised by the CSOs very seriously, and carefully considered them in the enhanced due diligence activities it undertook, which included a site visit by AIIB staff to Cambodia ...

AIIB does not support predatory lending or abusive collection practices, and recognizes the significant risks such actions pose to both creditors and borrowers. The MSME credit market in Cambodia has grown rapidly, and factors leading to such practices are complex. Loans to MSMEs have sometimes been secured by land-based collateral, with both formal and informal titles. At the same time, some Cambodian lenders have not kept pace with international best practices.

… AIIB is still undertaking internal review of these issues with regard to the loans in question as well as the sector overall. AIIB continues to remain in contact with all concerned stakeholders, including CSOs…

[The full response is attached]

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