By Nohad Topalian | 2024-11-18

BEIRUT -- Lebanon's economy will be better off without Hizbullah's Al-Qard al-Hassan, a "charity" that acts like a bank that the party has used as a cover to gain access to the international financial system, economists said.

Some account holders feared they would lose their money following the destruction of more than 15 Al-Qard al-Hassan branches in Beirut's southern suburb and other areas dominated by Hizbullah in October 20 strikes.

Among them is "Yassin," displaced from the south, who asked that his name not be used.

"After our homes were destroyed and we were displaced to the streets, we were hit with the loss of whatever gold we had left with Al-Qard al-Hassan," he told Al-Fassel.

Yassin said he had pawned the gold, which belonged to his wife and daughters, to obtain money to run his business, before his displacement.

"Our pain is very great due to Hizbullah's actions, which started a war that caused the destruction of our homes and the burning of our money," he said.

"Al-Qard al-Hassan is an illegitimate institution," activist Hussein Ezzeddine told Al-Fassel.

But many depositors have profited from it, "because they got money in exchange for gold without interest," he said, and therefore the destruction of the institution's facilities will not trigger a significant backlash against Hizbullah.

"If these people return to their villages and their homes are not rebuilt, however, we will witness a major uprising against Hizbullah," he said.

Hizbullah's base is harboring great anger against the party, "but in silence," he said, as it "left them in the streets without a roof."

"This anger may restore them to the bosom of the state, if it is that state that will rebuild their homes and villages," Ezzeddine said.

No official oversight

Al-Qard al-Hassan depositors "fear it will be impossible for them to recover their money as a result of Hizbullah's actions," economist Antoine Farah told Al-Fassel.

The institution is "illegal and illegitimate," he said, noting that it operates "outside the legitimate monetary system and official oversight."

Its profits grew after the financial collapse "as it benefited from the halt of operation in banks," he added, acquiring roughly 40% of the loan market.

This "illustrates the extent of the danger stemming from Al-Qard al-Hassan operating outside the legitimate financial system, which has contributed, along with other factors, to Lebanon's inclusion on the gray list," Farah said.

"The Lebanese economy will be better off without Al-Qard al-Hassan in the coming years, because it will have gotten rid of an illegitimate financial institution that caused damage to Lebanon's financial reputation," he added.