Crisis Exposes Danger of Relying on Foreign Money: Yunus

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Mar 2009
New Dehli, India, March, 31 2009 - Nobel laureate Mr Muhammad Yunus, who made micro finance a huge success in Bangladesh, said on Tuesday that the global financial meltdown has exposed the pitfalls of relying on foreign money.

“Financial crisis makes it more clear dependence on foreign money is not a great idea at all. It gets you exposed to other things, so my recommendation is to rely on the local money,” Grameen Bank founder, Mr Yunus said at a micro-finance conference orga nised by the community finance institution Sa-Dhan.

He said Grameen Bank has not taken external help since 1995 and all the money comes from its own system.

“Unless we can solve the money problem, micro credit will not go anywhere. In order to solve the money problem, the best solution is to create yourself into a bank, taking deposits and lending money,” Mr Yunus said.

Grameen Bank lends over $100 million a month and all the money comes from its own deposits. Mr Yunus said a separate banking law is required for the success of micro credit anywhere in the world.

“We should be making it very clear to the legislature that we need a separate law.” India had tabled Micro Finance Institution Bill in the Parliament that is currently being examined by the Standing Committee.

“Without the legislation, we will be stumbling again and again,” he said. - PTI



 

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