Nobel Peace Prize goes to Bangladeshi bank pioneer

Published on Friday 13 October 2006 13:42

BANGLADESHI Muhammad Yunus and his Grameen Bank were today awarded the Nobel Peace Prize.

The economist and his bank will share the prize for their work in advancing economic and social opportunities for the poor, particularly women.

They were cited for their efforts to help "create economic and social development from below" in their home country by using innovative economic programmes such as microcredit lending.

"Every single individual on Earth has both the potential and the right to live a decent life. Across cultures and civilisations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development," the Nobel Committee said at the announcement in Oslo, Norway.

Yunus was excited about winning the prize. "I'm absolutely delighted. I cannot believe that it has really happened," he said.

"Everyone was telling me that I would get the prize, but it came as a surprise.

"It is fantastic news for the people who have supported us."

Yunus has drawn praise for advancing microcredit, which has been credited with helping poor women to advance their lives and get out of poverty.

Microcredit is the extension of small loans, typically 27-54, to entrepreneurs too poor to qualify for traditional bank loans.

Grameen Bank, which was founded by Yunus, provides credit to "the poorest of the poor" in rural Bangladesh, without any collateral.

Yunus and the bank will share in the 10 million kronor (279,000) prize as well as a gold medal and diploma.