( CNN ) -- Bangladesh 's Supreme Court has rejected an appeal by Nobel laureate Muhammad Yunus to keep his position as managing director of the bank he founded . Yunus founded the Grameen Bank three decades ago in what he said was an effort to alleviate poverty . Grameen 's work cast a global spotlight on microcredit , a then-novel idea of making small loans to poor people who would not qualify for standard bank loans . For their efforts , Yunus and Grameen Bank won the Nobel Peace Prize in 2006 . He also was awarded the American Presidential Medal of Freedom and a Congressional Gold Medal . Last month , the central bank of Bangladesh -- the regulatory authority in the South Asian nation -- cited the 70-year-old 's age in explaining his removal as managing director . The government , which has a 25 % stake in Grameen , said that the bank 's rules required Yunus to end his service when he turned 60 . The case wound its way to the Supreme Court , which issued its ruling Tuesday . Lawmakers in the United States , and in other countries , have asked the Bangladeshi government to find a compromise to bring an end to the Grameen Bank crisis . `` The international community will watch this situation closely , and I hope that both sides can reach a compromise that maintains Grameen Bank 's autonomy and effectiveness , '' said Sen. John Kerry , the chairman of the U.S. Senate Foreign Relations Committee , last month . `` Institutions like the Grameen Bank make a significant contribution to Bangladesh 's development and democracy , and Professor Yunus ' life-long work to reduce poverty and empower women through microloans has deservedly received world-wide attention and respect . '' Yunus ' supporters have said the government 's effort to remove him has little to do with age and much to do with opposition to microcredit and Grameen 's execution of it . Critics of microcredit have charged that lenders were making big money off of small loans . Others have suggested that the actions against Yunus are politically motivated , a claim denied by the government . Yunus ' supporters say he has been under fire for criticizing politicians and trying to form his own political party four years ago during an interim , unelected , military-backed government . That party was later abandoned . Ashraful Islam , general secretary of the ruling Awami League party , told reporters last month that the government wanted to resolve the issue `` sympathetically , '' but Yunus had obstructed the process by going to the court . Khaleda Zia , a former prime minister and now opposition leader in parliament , lashed out at the government for going after the nation 's only Nobel laureate . `` The move was designed to belittle Yunus , who had earned prestige for the country , '' she said . In a statement issued last month , Yunus said he strongly believes Grameen will continue to work to empower the poor , especially women in rural areas . `` Opportunity has to be created to hand over the charge of Grameen Bank in a happy environment so that it could achieve its objectives , '' Yunus said . `` I am continuing the effort and it will go on until getting friendly cooperation from all . '' CNN 's Sara Sidner contributed to this report .
Yunus won the Nobel Peace Prize for pioneering microcredit lending . The government says he is past retirement age and must give up his post at Grameen Bank . Some of his supporters say the government 's actions are politically motivated .