The de facto bank is the largest microcredit organization in a country where the traditional banking sector is in shambles.
The Israeli military conducted a wave of airstrikes across Lebanon on Sunday, targeting multiple branches of Al-Qard al-Hasan, a financial organization that functions as a bank and is associated with the Iranian-backed militant group Hezbollah.
Rear Adm. Daniel Hagari, the military’s spokesman, said in a news briefing on Monday that one of the targets that was hit was a vault used by Al-Qard al-Hasan that was underneath a residential building in Beirut, the Lebanese capital. The vault, he said, contained “tens of millions of dollars.”
Israel’s minister of defense, Yoav Gallant, signed an order on Monday adding Al-Qard al-Hassan to a list of groups designated by Israel as terrorist organizations. The designation is part of a wider campaign led by Israel’s defense establishment, targeting the economic resources of Hezbollah and other terrorist organizations.
Here’s what you need to know:
- What is Al-Qard al-Hasan?
- Who uses the organization?
- Why is Israel targeting Al-Qard al-Hasan?
- What is the impact of the strikes?
- What is the economic situation in Lebanon?
What is Al-Qard al-Hasan?
In addition to its military wing, Hezbollah also functions as a political organization and provides a range of social services inside Lebanon. Al-Qard al-Hasan is registered as a charity in Lebanon.
The organization’s name translates as “benevolent loan,” lending money based on the principles of Islamic finance, which prohibits interest. The loans, usually no more than $5,000, are backed by deposits of gold, jewelry or other valuable goods. It also offers savings accounts and financial transfers, and processes payments.
