US pressures Bangladesh government on Muhammad Yunus issue

The US today pressed the Bangladesh government to soften its stand against micro-finance pioneer Muhammad Yunus, linking a "compromise" on the removal of the Grameen Bank founder to bilateral relations with the country.

Indicating a toughening of attitude against the Sheikh Hasina government, US assistant secretary of state Robert Blake said a compromise would be better for US-Bangla ties.

"The 'compromise' will allow us to make very good progress in our bilateral relations," Blake told newsmen after talks with Hasina and subsequently with foreign secretary Mijarul Quayes.

"I would leave the matter to Prime Minister Hasina and her team to describe their own position on this (issue)," he added.

Yunus was unceremoniously fired last month from his Grameen Bank on grounds that his appointment as managing director of the institution in 2000 was faulty.

During his talks with the premier, Blake, however, "expressed hope that a compromise could be found".

The US official's comments came after 26 US Congressmen on March 15 urged Hasina to amicably settle the issue, saying "we are troubled by the removal of Dr Muhammad Yunus from his position at Grameen Bank".

The group led by Joseph Crowley and Gary Ackerman said Bangladesh had made important strides in economic growth and fighting poverty and improving the rule of law but "unfortunately, the situation with Dr Yunus is beginning to overshadow these concrete gains".

The 70-year old Nobel Laureate, however, lost his initial legal battle in the high court which upheld a Bangladesh Bank decision to remove him from Grameen Bank for not obtaining its approval during his appointment as the executive of the special financial institution.

But Yunus filed an appeal before the Appellate Division of the Supreme Court against the high court order and the apex court is set to hear the prayer later this month.

Yunus has rallied huge support from the international community and civil society groups in the country.

His experiment of poor men's banking earned Bangladesh the repute of being the home of microcredit and himself the Nobel Peace Prize along with the micro lending agency in 2006.

Analysts earlier said Yunus' troubles stem from a 2007 move when he announced forming of a political party, an idea which was not welcomed by Hasina and her archrival Khaleda Zia. Though he himself abandoned the idea within months.