
By by Giulia Dal Bello — globalriskinsights.com — With the Lebanese Lira hitting a new low at the beginning of March, Lebanon is at the brink of collapse, undergoing fuel shortages and driving its population into poverty. The economic crisis has worsened in the last year due to the advent of the Covid-19 pandemic, the explosion of the port of Beirut in August, and, above all, to the Lebanese political class that has repeatedly failed to form a government. The political vacuum has given room to Hezbollah, which is likely one of the actors responsible for stalling the government’s formation, to demonstrate its abilities in managing the country through its apparently well-developed social welfare.
Hezbollah, namely the Party of God, has been largely criticized for being one of the main causes behind the current financial crisis, many Lebanese are turning to the terrorist organization in order to enjoy basic services that the state is no longer able to provide. As a means of gaining consensus, Hezbollah has implemented a series of programs and initiatives to assist the population economically, such as expanding the services of its parallel banking system, carrying out smuggling with Syria in order to provide cheaper goods, making donations to the Shi’ite population, and supporting agricultural projects to ensure weak families’ economic independence. Parallel Banking System
Firstly, when traditional banks shut their doors and froze dollar accounts, Hezbollah was able to supply hard currency through its parallel banking system known as Al-Qard al-Hasan Association. Al-Qard al-Hasan Association (AQAH), literally the “benevolent loan”, is managed as a charity, but, in fact, it can be considered a banking system for all intents and purposes. Nasrallah, Hezbollah’s leader, encouraged depositing the money at Al-Qard al-Hasan, claiming that the bank had already provided $3.7 billion in loans to some 1.8 million people. He depicted the association as rock-solid, declaring that the Party’s supporters, who deposited money at the al-Qard al-Hasan, managed to keep their money when banks claimed that they were unable to pay their depositors in dollars.