Bank that helps world’s poorest opens in Scotland

ECONOMIST Professor Muhammad Yunus is to unveil details of a new charity during a visit to Scotland – which will facilitate the launch of a branch of his microfinance bank in Glasgow.

The Nobel Peace Prize winner, who is to speak in both Glasgow and Edinburgh tomorrow will launch the Grameen Scotland Foundation, which aims to raise an initial £1 million to set up the Scottish branch of the Grameen Bank – the first in Europe.

The bank, which was originally set up to help impoverished communities in Bangladesh, will offer unsecured loans for social business development and community-orientated financial advice to people in Glasgow, North Ayrshire, West Dunbartonshire and Inverclyde – four of Scotland’s five poorest communities.

Prof Yunus’s theories have proven to eradicate poverty by making small, collateral-free loans to the poorest people, who do not have access to the traditional banking system.

Prof Pamela Gillies, principal and vice-chancellor of Glasgow Caledonian University, one of three Grameen Scotland Foundation trustees, said: “Though excellent microcredit and corporate banking is available in Scotland, it has not been able to break through deep-rooted economic inequalities.”