Causas Appeal to protect the Grameen Bank

Maria da Graça Carvalho signed the opened letter below to protect the Grameen Bank's independence and its social mission towards women in Bangladesh. The letter was written by Sophie AUCONIE,  Rapporteur on European Social Entrepreneurship Funds; and by Pervenche BERÈS - Chair of Employment and Social Affairs Committee:

Inventor of microcredit and social business, Professor Yunus created Grameen Bank in 1979 in Bangladesh. Today this institution which fights poverty and financial exclusion is in danger.

Grameen Bank has helped thousands of women in Bangladesh to get out of extreme poverty. Bringing forth a new socio-economic model of development, Grameen Bank and its founder, Professor Muhammad Yunus, won the 2006 Peace Nobel Prize for their pioneering role in the fight against poverty and financial exclusion.

We call on you, women MEPs, to rally to protect its independence and its social mission towards women in Bangladesh, by signing the open letter attached.

Grameen Bank ("village bank") is present in 50,000 villages and helps 8.3 million borrowers, over 95% of whom are women. Since M. Yunus' forced resignation because of his age, in May 2011, the position of managing director of Grameen Bank has remained vacant. By a ruling of August, Sheikh Hasina, Prime Minister of Bangladesh, seeks to lay her hands on Grameen Bank's management by changing the appointment process of the managing director.

Pursuant to the rules of the bank, it is up to the board to establish a committee which selects candidates and ultimately choose the managing director. The board of directors of the bank has 12 members, 9 of whom are women democratically elected by the borrower shareholders and 3, including the Chairman, are appointed by the State. The will of women elected on the board is that the selection committee is chaired by Mr. Yunus, to ensure that his successor be true to the social mission of Grameen Bank and respectful of its governance, independent of government and free from corruption.

However, the Prime Minister of Bangladesh, Sheikh Hasina, has sought, including through intimidation, to impose a candidate close to her political party. Unable to circumvent the women members of the board, she has decided to force the way through a ruling adopted in August which modifies Grameen Bank's rules of governance. She considers the Bank to be part of the public sector, although the State only holds 3% of its capital (the remaining 97% are owned by borrowers).

All women American senators, Democrats and Republicans, have already sent a letter of warning to the Prime Minister of Bangladesh. The European Union, its parliament and its women MEPs in particular, shall mobilize. Such is the purpose of this open letter, which we invite you to sign.

Thank you in advance for supporting this initiative. Feel free to contact us if you have any questions.

Sophie AUCONIE                                                                Pervenche BERÈS

Rapporteur on European Social Entrepreneurship Funds         Chair of Employment and Social Affairs Committee