The United States drew attention Tuesday to international condemnation of Nobel peace laureate Muhammad Yunus's conviction in Bangladesh in what his supporters called a politically motivated prosecution.

But the US stopped short of itself criticizing Monday's ruling by a court that found Yunus, 83, guilty of violating labor laws.

Yunus is credited with lifting millions out of poverty with his pioneering microfinance bank but has earned the enmity of longtime Prime Minister Sheikh Hasina, who has accused him of "sucking blood" from the poor.

The US State Department noted Yunus's Nobel prize and other honors and said he made a significant contribution to fighting world poverty.

"We have been following the case against him closely and note the widespread international criticism of the verdict," a department spokesperson said on background.

"We have encouraged the Bangladeshi government to ensure a fair and transparent legal process, and will continue to follow any further developments closely," the spokesperson added.

Yunus and three colleagues from Grameen Telecom, one of the firms he founded, were accused of violating labor laws when they failed to create a workers' welfare fund in the company.

The four have denied the charges and were granted bail pending appeals.

Irene Khan, a former Amnesty International chief now working as a UN special rapporteur who was present at Monday's court session, told AFP the conviction was "a travesty of justice."

"A social activist and Nobel laureate who brought honour and pride to the country is being persecuted on frivolous grounds," she said.

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