Oikocredit welcomes opportunity for dialogue following OECD NCP submission acceptance

Oikocredit welcomes opportunity for dialogue following OECD NCP submission acceptance

15 September 2023

Oikocredit supports the decision of the Organisation for Economic Co-operation and Development (OECD) National Contact Point (NCP) in the Netherlands to accept the submission made by Licadho, Equitable Cambodia, and Fian Germany.

The submission concerns potential non-compliance with OECD guidelines in relation to Oikocredit's investment approach in Cambodia’s microfinance sector. It was made in December by the three NGOs, and the NCP announced its acceptance of the submission today.

The NCP’s acceptance underlines the importance of continued dialogue on client protection and financial inclusion in Cambodia. Both topics are long-standing focuses for Oikocredit.

The cooperative welcomes this opportunity for collaborative exchange in support of improving lives through responsible finance in Cambodia.

The next steps

The next phase of the process is a consultation period. Based on experiences with similar instances, the NCP indicates that parties concerned typically need about a year to complete the consultation process.

After the consultation process, the NCP will release a report or statement.

While the NCP is not a judicial body, it plays a valuable role as a forum for discussing good business practices. Oikocredit is dedicated to business best practices and keen to learn from the consultation facilitated by the NCP.

Why we’re committed to Cambodia

Founded almost 50 years ago, Oikocredit has been wholeheartedly dedicated to social impact investing since our operations began.

Social impact investors like Oikocredit have played and continue to play a key role in expanding the reach of responsible financial services to those who need them most.

Through its investments, capacity building and other interventions with its partners, Oikocredit targets increased access to finance and resilience for end-clients. As a social investor, Oikocredit’s activities are guided by the principle of empowering people to improve their lives.

Oikocredit is committed to continuing its support of responsible financial inclusion in Cambodia.

A careful approach

It is by partnering with institutions that share our social focus and by applying best practices in due diligence and monitoring standards that Oikocredit targets its investments for social impact.

We use tools developed based on globally accepted standards, such as the Social Performance Task Force’s Universal Standards for Social Performance Management.

Of the 84 licensed microfinance institutions in Cambodia, Oikocredit has active loans with seven of these institutions.

We actively leverage our influence over our partners, seeking to improve their practices in support of empowering people on low incomes to improve their lives.

Wider initiatives and ongoing commitment

Oikocredit has also taken active part in sector initiatives to improve lending practices and financial literacy across Cambodia.

Together with like-minded stakeholders, we helped pave the way for mandatory regulation of lending practices in Cambodia, including important measures on client protection.

Oikocredit remains engaged with the sector to overcome the challenges of Cambodian microfinance. It is only through perseverance and adaptation to change that our work can be of value to those who need it most.

« Back