Bangladesh plans law change to allow government appointment of Grameen Bank managing director

DHAKA, Bangladesh – Nobel laureate Muhammad Yunus says Bangladesh’s latest move to expand the power of the government-appointed chairman at pioneering Grameen Bank could hurt the millions of poor borrowers who own 97 per cent of the lender.

Government spokesman Musharraf Hossain Bhuiyan said a proposed law change will allow the bank’s chairman to appoint the managing director. That authority is now held by the bank’s board of directors who are mostly Yunus supporters.

Grameen has been without a managing director since last year after the government ousted Yunus in a dispute over his retirement age.

Yunus, who founded Grameen, said in a statement Thursday that the change will pave the way for the government to take control of the bank that pioneered lending to the very poor.