Bangladesh Grameen bank delaying reform

The Bangladeshi based Mohammad Yunus who developed microcredit finance in Bangladesh has been accused of delaying much needed reform.

Bangladesh Grameen bank delaying reform

World Bulletin / News Desk

Bangladesh's government has accused Nobel peace prize winner Professor Mohammad Yunus of delaying reform in the bank he founded to help alleviate poverty in the country. 

The Finance Minister M A Muhith said on Monday that Yunus is "making things difficult for the government" who he said are trying to develop Grameen Bank but "his [Yunus'] supporters are creating obstacles by filing cases."

Muhith recognized Yunus' role in developing Grameen Bank and the microcredit system, which provides small loans to people in rural communities in need of finance, but said "he himself became the institution and that caused the rift between us."

Grameen Bank and the Yunus Center were not available to comment on the Muhith's statement.

Abu Ahmed, an economics professor at the University of Dhaka, said he was concerned about how the dispute might affect Grameen Bank's reputation. 

"The government should decide on consulting Professor Yunus. It would be better if he could continue [heading the bank] but as long as there is an age bar, the government should consult with him on how to reconstruct Grameen Bank," said Ahmed.  "Even if there are any irregularities, they should be corrected by consulting Professor Yunus."

Bangladesh's government passed new laws in 2013 to adapt the way the Grameen Bank worked but has not yet appointed a new chairman and managing director to the bank. 

Grameen Bank was first set up in 1983 with a government ordinance in an attempt to supply microfinance across Bangladesh as a way to beat poverty by allowing people, especially women, to start their own small businesses. 

Yunus was dismissed from his role as the head of the bank in 2011 after passing the age limit for the role. There had also been a series of controversies about tax evasion in Grameen Bank shortly before his dismissal.

Grameen Bank and the microfinance system has come under criticism in Bangladesh in recent years after it has been accused of worsening poverty for some by leaving them in debt. 

Güncelleme Tarihi: 07 Temmuz 2015, 15:51