The recent decision by Al-Qard al-Hassan, Hezbollah’s illegal financial institution, to postpone until February 10 the payment of compensation to victims of the conflict with Israel has sent shockwaves through the Shiite community. The payments were originally scheduled for February 1.
To justify this delay, the militia-run ‘bank’ cited “internal technical and administrative issues” while assuring that its other financial services, such as loans, deposits and withdrawals, will be operating normally.
According to an article written by Nawal Berri for Nidaa al-Watan on Friday, this announcement has raised questions about the extent of Hezbollah’s financial difficulties. According to multiple sources cited by the journalist, Al-Qard al-Hassan employees were caught off guard, as were the beneficiaries of these compensations, with no valid explanation provided for the postponement.
The report recalls that, following the war between Israel and Hezbollah, the latter had pledged to provide direct aid to families affected by the fighting. Each family was supposed to receive an annual sum of $14,000, distributed as follows: a one-time payment of $8,000 for furniture replacement and a rental allowance of $6,000 per year for those living in Beirut and its surroundings, or $4,000 for those residing in southern Lebanon, the Beqaa and other regions.
According to retired Colonel Adel Machmouchi, cited by Nidaa al-Watan, these financial aids were intended to appease popular discontent over the widespread devastation. He said that Iranian officials who recently visited Lebanon provided emergency assistance to support Hezbollah and its grassroots base. However, due to a lack of sufficient financial resources to undertake large-scale reconstruction projects — which require significant funding — Hezbollah has opted to contain the situation and quell potential unrest by carrying out minor repairs where possible.
Machmouchi noted that the available funds had been used in the hope of receiving additional aid. However, supply lines, particularly aerial routes, have come under increased scrutiny, especially after the closure of the land border with Syria, making it difficult to transport financial aid. Moreover, Iran, which is grappling with a severe internal economic crisis, could be less able to support Hezbollah financially. This would explain the current crisis and Al-Qard al-Hassan’s announcement on Wednesday regarding the postponement of monthly payments, according to Machmouchi.
Banking risk expert Mohammad Fahili, also interviewed by Nidaa al-Watan, criticized the actions of the militia-run bank, calling on Lebanese authorities to intervene. He pointed out that the institution is not legally authorized to provide financial services such as loans or compensation payments. He also highlighted significant violations by Al-Qard al-Hassan, particularly its operation of ATMs without official authorization, which contradicts the regulations of Lebanon’s Central Bank.
Israel Accuses Iran of Funding Hezbollah via Turkey
In a related development, the Wall Street Journal reported that Israel has filed a complaint with the supervisory committee responsible for ensuring the strict enforcement of the ceasefire, alleging the transfer of tens of millions of dollars in cash to Hezbollah via Iranian diplomats. The American newspaper cited a US defense official and other well-informed source.
According to the WSJ, Israel informed the committee that Turkish officials facilitated the air transport of Iranian funds intended for Hezbollah — allegations that Turkey has strongly denied. Ankara asserted that it had not been officially questioned on the matter and denied any involvement in the transfer of funds to Hezbollah.
Faced with a severe liquidity crisis, with promised aid still on hold, Hezbollah and its institutions find themselves in a precarious situation. This raises questions about the future of Al-Qard al-Hassan and how Hezbollah will continue to maintain its influence without sufficient resources to meet the immediate needs of its support base.
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