The Qard al-Hasan in Lebanon, widely regarded as Hezbollah’s de facto central bank, has suspended payments for housing displaced individuals and repairing partially damaged homes due to war with Israel.
The suspension will remain in effect until February 10, with the association citing “technical reasons” for the decision. However, it stated that its other financial services—such as loan disbursements, withdrawals, deposits, and other transactions—will continue as usual.
Observers attribute the move to Hezbollah’s mounting financial losses amid the conflict, as Israel has successfully targeted and destroyed most of Qard al-Hasan’s branches, offices, and vaults, wiping out significant sums of cash and jewelry stored within them.
The scale of the losses has left Hezbollah financially strained, making it unable to cover compensation costs—unlike its response following the 2006 war.
A source familiar with Hezbollah’s internal discussions said the group is facing a severe cash shortage, preventing it from covering rent and home repair costs for displaced families.
Speaking to Asharq Al-Awsat, the source said Hezbollah had promised to provide housing aid for a year but underestimated the scale of destruction and the number of affected families, making the financial burden too great to handle.
After the ceasefire, Hezbollah announced that Qard al-Hasan would pay each affected family $14,000—$8,000 as a one-time furniture allowance and $6,000 for a year’s rent in Beirut. Families in the south, Bekaa, and other areas were promised $4,000 for rent.
The source, who declined to be named, revealed that Iran sent Hezbollah about $1 billion after the ceasefire, but the funds have already run out. With no cash left, Hezbollah is now searching for new funding sources.
He also questioned Qard al-Hasan’s explanation that “technical reasons” were behind the suspension of payments while other financial services continued. There are growing fears, he warned, that Hezbollah could dip into public deposits to cover compensation.
The group is also looking to restore supply routes from Iran, the source added, as Lebanese authorities have tightened controls at Beirut’s airport and port, blocking Hezbollah’s unchecked shipments.
