Al-Qard al-Hassan freezes compensation checks to those impacted by war: Al Modon

BEIRUT — Al-Qard al-Hassan Association, Hezbollah’s finance arm, has frozen check disbursements for those affected by the Israel-Hezbollah war starting June 23 until further notice, Lebanese news outlet Al Modon reported on Tuesday.

Checkholders attempted to inquire about the reasons behind the freeze and were “told by local Hezbollah officials that funds were not currently available but would be in the near future,” Al Modon wrote.

In the aftermath of the deadly year-long war between Israel and Hezbollah, the party had launched a broad compensation campaign for those affected by the war through its institution. The payments would go towards home and shop repairs, covering parts of the losses and “securing a minimal level of social safety and rental assistance,” Al Modon stated.

Al-Qard al-Hassan is a charitable and financial institution that serves as Hezbollah’s personal banking and microfinance arm. It operates according to the Islamic principle of interest-free lending, offering financial assistance without seeking profit. The organization has been under U.S. sanctions since 2007, when the institution was identified as providing financial support to Hezbollah, which the United States designates as a foreign terrorist organization.

In October 2024, Israel targeted several al-Qard al-Hassan branches in Beirut’s southern suburbs and southern Lebanon. Beyond the devastating destruction caused by the war, Hezbollah’s financial situation has grown significantly more difficult since the toppling of Bashar al-Assad’s regime in Syria, which severed the direct supply line between Tehran and Haret Hreik.

Supply difficulties have been further compounded by tighter control over land, sea and Rafik Hariri International Airport borders, along with increased scrutiny by Washington and Tel Aviv of alternative smuggling routes operating via Turkey.

Since the Nov. 27, 2024, cease-fire, nearly $500 million has been disbursed to those affected by the war, according to figures cited by Al Modon.

According to L’Orient Today’s information, the aid per household whose home was damaged or destroyed ranged between $12,000 and $14,000, depending on whether the property was located in the south or the capital. However, barely three months later, a severe liquidity shortage had emerged: The funds released so far, which prioritized the families of fighters and Hezbollah’s most loyal supporters, covered only about 50 percent of the housing needs.

Back in February, the foundation had already announced delays in payments due to “internal technical and procedural issues,” according to a statement issued at the time. Since then, these suspension periods have gradually grown, extending from a few days to several weeks, Al Modon reported.

“Eventually, they tied payment to post-check maturity dates. The delay was then extended to three months. Now, a full freeze has been announced,” Al Modon further noted.

The World Bank had previously estimated the size of physical asset damage from the Israel-Hezbollah war at a staggering $6.8 billion, with housing being the hardest hit sector, with damages estimated at $4.6 billion. It also estimated reconstruction costs at $11 billion.