Nobel winner Yunus says ready to head Bangladesh 'interim government'

Bangladeshi Nobel Peace Prize winner and microcredit pioneer Muhammad Yunus gestures as he delivers a lecture at Italy's Chamber of Deputies on July 10, 2014. [AFP]

Nobel winner Muhammad Yunus said on Tuesday he was ready to head an interim government in Bangladesh after mass demonstrations forced longtime ruler Sheikh Hasina to flee the country.

"I am honoured by the trust of the protesters who wish for me to lead the interim government," he said in a written statement to AFP.

"If action is needed in Bangladesh, for my country and for the courage of my people, then I will take it," the 84-year-old Nobel-winning microfinance pioneer said, also calling for "free elections."

"The interim government is only the beginning," he said.

"Lasting peace will only come with free elections. Without elections, there will be no change."

Yunus, known as the "banker to the poorest of the poor", was awarded the Peace Prize in 2006 for his work loaning small cash sums to rural women, allowing them to invest in farm tools or business equipment and boost their earnings.

Earlier Tuesday, student leaders in Bangladesh demanded that Yunus lead a caretaker government, a day after the military took control as demonstrations forced Hasina to flee the country.

Hasina, 76, had been in power since 2009 but was accused of rigging elections in January and then watched millions of people take to the streets over the past month demanding she quit.

Hundreds of people were killed as security forces sought to quell the unrest but the protests grew and Hasina finally fled aboard a helicopter on Monday after the military turned against her.

"Youth have voiced their need for change in our country," Yunus said.

"The Prime Minister heard them by leaving the country. This was a very important first step taken yesterday.

"The courage of this youth is boundless," he added.

"They have made Bangladesh proud and shown the world our nation's determination against injustice."

Speaking separately to French daily Le Figaro earlier, Yunus said he wanted to stay "out of politics", but could lead the government if circumstances "require it".