Banker to the Poor: Micro-lending and the Battle Against World Poverty

by Muhammad Yunus

There were also localized disasters, such as the tornado that hit the Manikganj District in 1989. Grameen’s operational procedures in such situations are always the same. First, we suspend all rules and regulations of the bank. The local bank manager and all bank personnel are directed to immediately scour the region to save as many lives as possible and to provide shelter, medicine, food, and protection. Second, the bank workers visit the houses of our members and try to reestablish the victims’ confidence by letting them know that the bank and their fellow members are ready to support them. We then find out what the survivors need and make provisions to provide it. We provide emergency food as well as water and saline solution to prevent dehydration and diarrhea. Emergency seeds for planting and cash for buying new cattle and new capital assets are also distributed. Disaster loans are provided. We want to give our members time to mourn their loved ones, but we do not want them to sink into apathy and lethargy from despair. We want them to start right up again thinking of survival schemes. Because national and international relief is usually late and inadequate, the only way that victims can get through the pain, suffering, and devastation is by rebuilding what they had. During periods of disaster, old loans are rescheduled and a grace period is accorded for repayment. In a special meeting, the local center is given the authority to decide how long this grace period shoul...