Muhith praises Yunus for his role in microcredit

Finance Minister AMA Muhith yesterday lauded Nobel Laureate Prof Muhammad Yunus, terming the founder of Grameen Bank the architect of microcredit.

“Microfinance has not made people rich but it has changed their conditions. It has played a role in reducing poverty, empowering women and promoting self-employment,” Muhith said at the inauguration of a workshop on microcredit.

The foreign affairs ministry and the Palli Karma-Sahayak Foundation (PKSF) have jointly organised the two-day event styled “Promoting Microfinance for Economic Development in the Indian Ocean Rim Association Region”, where representatives from 12 countries in the region are taking part.

He said the PKSF has given microcredit an institutional shape, with support from the World Bank. State-run PKSF provides low-cost funds to microlenders with a view to helping those with no land or credible material possessions. Since inception in 1990, it has lent $1.534 billion through its partner organisations covering more than 8.23 million borrowers.

PKSF Chairman Qazi Kholiquzzaman Ahmad said microfinance would be of no use if a small amount of money is loaned and the amount recovered through weekly instalments and with interest.

“This system does not help the borrowers much. So, we should give attention to lending adequate money for creating micro-entrepreneurs. We also need to pay attention to education, health and human development of the borrowers,” Ahmad added.

PKSF is supporting the rural economy by earmarking 40 percent of the loans for the agriculture sector, said Abdul Karim, managing director of PKSF. Despite huge expansion, 25 percent of the poor are not being able to benefit from microcredit, said Firdaus Dahlan, director of the IORA.