Hezbollah expands financial wing as Lebanon’s banking crisis continues

Workers carry out renovation works outside the headquarters of the Banque du Liban (Lebanese Central Bank) in the capital Beirut. (AFP file photo)
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Updated 18 February 2023
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Hezbollah expands financial wing as Lebanon’s banking crisis continues

  • The association accused the state of having spent more than $20 billion since 2019 in support of smuggling — by subsidizing materials being illegally taken into Syria — and to maintain an exchange rate of LBP1,500 to the dollar

BEIRUT: The Association of Banks in Lebanon has warned against “a plan to systematically destroy the banking sector, carried out by a group of no more than 50 mercenaries.”

The association was referring to a group of protesters who set banks alight on Thursday. It released a statement saying: “The funds needed to pay off your deposits are not with the banks, so entering them by force, destroying them, or breaking their contents will not benefit you. You are only harming yourselves and reducing the chances of regaining your rights. The time has come for you to realize who took away your rights and who you should direct your arrows at and pressure to recover them.”

ABL said it was baffled by all the accusations that its strike is contributing to the depreciation of the local currency. “If banks close, they are accused of devaluating the local currency; if they open, they are accused of playing the market.

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Lebanese economic bodies denounced the attacks on the banking sector, stressing that everyone needs to act rationally and responsibly to overcome the prevailing crises with the fewest possible losses, and to preserve the rights of depositors.

“The banks deposit their customers’ deposits with the Banque du Liban, in (accordance with) BDL’s circulars and in line with the principles of global banking. These funds were used to support the exchange rate and to finance the state, which then failed to return them. Some parties set out to absolve the state of its obligations and, because of these dealings, banks lost all their private money, which amounted to over $24 billion. Still, banks are accused of seizing deposits and lending them to the BDL (out of) greed.”

The association accused the state of having spent more than $20 billion since 2019 in support of smuggling — by subsidizing materials being illegally taken into Syria — and to maintain an exchange rate of LBP1,500 to the dollar.

It said: “Banks had lent over $55 billion in deposits and are working to recover them in order to return them to the depositors, so most judicial decisions oblige them to collect these debts on the basis of the official exchange rate prior to the collapse — i.e. 1,507 Lebanese pounds to the dollar, or, at best, according to a banker’s draft drawn from the BDL, equal to less than 15 percent of the value of the loan it obtained. So how can banks return the deposits to their customers now?”

One economic observer feared that the banks would be dragged into an open strike, leading to complete closure, following the attacks on various branches, thus putting them in direct confrontation with citizens.

On Saturday, Lebanese economic bodies denounced the attacks on the banking sector, stressing that everyone needs to act rationally and responsibly to overcome the prevailing crises with the fewest possible losses, and to preserve the rights of depositors.

Meanwhile, Hezbollah has announced the opening of a new branch of its Al-Qard Al-Hasan Association, which is subject to US sanctions, in the predominantly Druze and Christian Souk Al-Gharb Aley area, where the party has little to no presence.

Al-Qard Al-Hasan is described as Hezbollah’s financial wing, so the new branch reveals growth in Hezbollah’s financial institutions at the expense of the state’s, which are collapsing.

An economic observer, who asked to remain anonymous, noted that Al-Qard Al-Hasan seems to have benefitted from the banks’ decline and their inability to grant loans, and has stepped in to fill the gap by providing loans in exchange for mortgages of gold or property.

“This association lends money and keeps mortgages until it collects the amount, and, in the event that the customer does not clear the loan, it sells the gold or real estate,” they said.

The association’s files were hacked a year ago and some data was leaked, including information about depositors and borrowers. The leaks showed that the association possesses deposits amounting to around $500 million and had provided loans worth $450 million.

The Al-Qard Al-Hasan Association is not licensed by the BDL, and cannot be pursued or held accountable by the judiciary in the event that a borrower encounters any problems.

Former MP Mustafa Alloush told Arab News: “By opening this new branch, Hezbollah is trying to give the impression that it is non-sectarian and for all people. The fact is, the party does not make profits from this association, as it does from cross-border smuggling, captagon trade, and the collapse of the state.”

He continued: “The state’s hands are tied; what’s left of the state is unable to take decisions unless the constitution is applied and the reforms that Lebanon committed to are implemented.”

Alloush added that banks could benefit from the riots and use them as an excuse to put pressure on the state so it would not be the only one responsible for the loss of people’s deposits, but become a “partner in crime” with the state and the BDL.

 


Israeli-backed group seeks at least $30 million from US for aid distribution in Gaza

Updated 2 sec ago
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Israeli-backed group seeks at least $30 million from US for aid distribution in Gaza

The foundation says it has provided millions of meals in southern Gaza since late May to Palestinians
The effort has seen near-daily fatal shootings of Palestinians trying to reach the distribution sites

WASHINGTON: A US-led group has asked the Trump administration to step in with an initial $30 million so it can continue its much scrutinized and Israeli-backed aid distribution in Gaza, according to three US officials and the organization’s application for the money.

That application, obtained by The Associated Press, also offers some of the first financial details about the Gaza Humanitarian Foundation and its work in the territory.

The foundation says it has provided millions of meals in southern Gaza since late May to Palestinians as Israel’s blockade and military campaign have driven the Gaza to the brink of famine.

But the effort has seen near-daily fatal shootings of Palestinians trying to reach the distribution sites. Major humanitarian groups also accuse the foundation of cooperating with Israel’s objectives in the 20-month-old war against Hamas in a way that violates humanitarian principles.

The group’s funding application was submitted to the US Agency for International Development, according to the US officials, who were not authorized to discuss the matter publicly and spoke on condition of anonymity.

The application was being processed this week as potentially one of the agency’s last acts before the Republican administration absorbs USAID into the State Department as part of deep cuts in foreign assistance.

Two of the officials said they were told the administration has decided to award the money. They said the processing was moving forward with little of the review and auditing normally required before Washington makes foreign assistance grants to an organization.

In a letter submitted Thursday as part of the application, Gaza Humanitarian Foundation secretary Loik Henderson said his organization “was grateful for the opportunity to partner with you to sustain and scale life-saving operations in Gaza.”

Neither the State Department nor Henderson immediately responded to requests for comment Saturday.

Israel says the foundation is the linchpin of a new aid system to wrest control from the United Nations, which Israel alleges has been infiltrated by Hamas, and other humanitarian groups. The foundation’s use of fixed sites in southern Gaza is in line with Israeli Prime Minister Benjamin Netanyahu’s plan to use aid to concentrate the territory’s more than 2 million people in the south, freeing Israel to fight Hamas elsewhere.

Aid workers fear it’s a step toward another of Netanyahu’s public goals, removing Palestinians from Gaza in “voluntary” migrations that aid groups and human rights organizations say would amount to coerced departures.

The UN and many leading nonprofit groups accuse the foundation of stepping into aid distribution with little transparency or humanitarian experience, and, crucially, without a commitment to the principles of neutrality and operational independence in war zones.

Since the organization started operations, several hundred Palestinians have been killed and hundreds more wounded in near-daily shootings as they tried to reach aid sites, according to Gaza’s Health Ministry. Witnesses say Israeli troops regularly fire heavy barrages toward the crowds in an attempt to control them.

The Israeli military has denied firing on civilians. It says it fired warning shots in several instance, and fired directly at a few “suspects” who ignored warnings and approached its forces.

It’s unclear who is funding the new operation in Gaza. No donor has come forward. The State Department said this past week that the United States is not funding it.

In documents supporting its application, the group said it received nearly $119 million for May operations from “other government donors,” but gives no details. It expects $38 million from those unspecific government donors for June, in addition to the hoped-for $30 million from the United States.

The application shows no funding from private philanthropy or any other source.

Gaza’s starvation crisis fuels deadly race for survival

Palestinians wait to receive food cooked by a charity kitchen, in Gaza City, June 21, 2025. (REUTERS)
Updated 12 min 46 sec ago
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Gaza’s starvation crisis fuels deadly race for survival

  • Palestinians say they are forced into a competition to feed their families

KHAN YOUNIS: Each day, Palestinians in Gaza run a deadly gauntlet in hopes of getting food. Israeli troops open barrages of gunfire toward crowds crossing military zones to get to the aid, they say, and knife-wielding thieves wait to ambush those who succeed. Palestinians say lawlessness is growing as they are forced into a competition to feed their families.
A lucky few manage to secure some packets of lentils, a jar of Nutella, or a bag of flour.
Many return empty-handed and must attempt the ordeal again the next day.
“This is not aid. It’s humiliation. It’s death,” said Jamil Atili, his face shining with sweat as he made his way back last week from a food center run by the Gaza Humanitarian Foundation, an Israeli-backed private contractor.
He had suffered a knife cut across his cheek amid the scramble for food and said a contractor guard pepper-sprayed him in the face. Still, he emerged with nothing for his 13 family members.

I have nothing to feed my children. My heart is broken.

Jamil Atili, Gaza resident

“I have nothing to feed my children,” he said, nearly crying. “My heart is broken.”
Israel began allowing food into Gaza this past month after cutting it off completely for 10 weeks, though UN officials say it is not enough to stave off starvation.
Most of the supplies go to GHF, which operates four food distribution points inside Israeli military zones. A trickle of aid goes to the UN and humanitarian groups.
Both systems are mired in chaos.
Daily gunfire by Israeli troops toward crowds on the roads heading to the GHF centers has killed several hundred people and wounded hundreds more in the past weeks, according to Gaza’s Health Ministry.
At the same time, in past weeks, hungry crowds have overwhelmed most of the UN’s truck convoys and stripped away the supplies. Israeli troops have opened fire to disperse crowds waiting for trucks near military zones, witnesses say — and on Tuesday, more than 50 people were killed, according to the ministry.
“I don’t see how it can get any worse, because it is already apocalyptic. But somehow it does get worse,” said Olga Cherevko, spokesperson for the UN humanitarian affairs office.
Thousands of people must walk miles to reach the GHF centers, three of which are in the far south outside the city of Rafah. Palestinians said the danger begins when the crowds enter the Israeli military zone encompassing Rafah.
Mohammed Saqer, a father of three who risked the trip multiple times, said that when he went last week, tanks were firing over the heads of the crowds as drone announcements told everyone to move back.
It’s like it was "Squid Game,” Saqer said, referring to the dystopian thriller TV series in which contestants risk their lives to win a prize. Just raising your head might mean death, he said.
He and others crawled forward, then left the main road.
A shot rang out nearby, and they ducked, he said. They found a young man on the ground, shot in the back.
The others assumed he was dead, but Saqer felt his chest — it was still warm, and he found a pulse.
They carried him to a point where a car could pick him up.
Saqer said he stood for a moment, traumatized by the scene. Then people shouted that the site had opened.
The mad dash
Everyone broke into a crazed run, he said. He saw several people wounded on the ground. One man, bleeding from his abdomen, reached out his hand, pleading for help. No one stopped.
“Everyone is just running to get to the aid, to get there first,” Saqer said.
Omar Al-Hobi described the same scene four times when he went last week.
Twice, he returned empty-handed; once, he managed to grab a pack of lentils. On the fourth day, he was determined to secure flour for his three children and pregnant wife.
He said he and others inched their way forward under tank fire. He saw several people shot in the legs. One man fell bleeding to the ground, apparently dead, he said.
Horrified, Al-Hobi froze, unable to move, “but I remembered I have to feed my children.”
He took cover in a greenhouse, then heard the announcement that the center was open and began to run.
Avoiding thieves
At the center, food boxes are stacked on the ground in an area surrounded by fences and earthen berms. Thousands rush in to grab what they can in a frantic melee.
You have to move fast, Saqer said. Once supplies run out, some of those who came too late rob those leaving. He swiftly tore open a box and loaded the contents into a sack — juice, chickpeas, lentils, cheese, beans, flour and cooking oil.
Then he took off running. There’s only one route in and out of the center. But, knowing thieves waited outside, Saqer clambered over a berm, running the risk of being fired on by Israeli troops.
“It all depends on the soldiers’ mood. If they are in a bad mood … they will shoot at me. If not, they will let me be,” he said.
Heba Jouda said she saw a group of men beat up a boy of 12 or 13 years old and take his food as she left one of the Rafah centers.
Another time, she said, thieves attacked an older man, who hugged his sack, weeping that his children had no food.
They sliced his arm with a knife and ran off with the sack.
Al-Hobi said he was trampled in the scramble for boxes.
He managed to grab a bag of rice, a packet of macaroni.
He snagged flour — but much of it was ruined in the chaos.
At his family tent outside Khan Younis, his wife, Anwaar Saleh, said she will ration it all to make it last a week or so.
“We hope he doesn’t have to go back. His life is the most important thing,” she said.
Al-Hobi remains shaken — both by his brushes with death and the callousness that the race for food has instilled in everyone.
“No one will show you mercy these days. Everybody fends for themselves.”

 


Iran president says will not halt nuclear activity ‘under any circumstances’

Updated 21 June 2025
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Iran president says will not halt nuclear activity ‘under any circumstances’

  • “We are ready to discuss and cooperate to build confidence in the field of peaceful nuclear activities,” said Pezeshkian

TEHRAN: Iran’s President Masoud Pezeshkian said Saturday his country will not halt nuclear activity “under any circumstances” amid ongoing fighting with Israel which hit nuclear sites.

“We are ready to discuss and cooperate to build confidence in the field of peaceful nuclear activities, however, we do not agree to reduce nuclear activities to zero under any circumstances,” said Pezeshkian during a phone call with French President Emmanuel Macron, according to the official IRNA news agency.


Cyprus arrests British man on suspicion of terror-related plot, police say

Updated 21 June 2025
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Cyprus arrests British man on suspicion of terror-related plot, police say

  • The man appeared before a district court on Saturday
  • Israeli Foreign Minister Gideon Saar said in a post on X that an Iranian attempt to attack Israeli citizens in Cyprus was thwarted

NICOSIA: Police in Cyprus have arrested a British man on suspicion of terror-related offenses and espionage, authorities said on Saturday, with Israel accusing Iran’s Revolutionary Guards of trying to attack Israeli citizens on the island.

The man appeared before a district court on Saturday, which ordered an eight-day detention pending inquiries.

Police gave no further details, citing national security.

Israeli Foreign Minister Gideon Saar said in a post on X that an Iranian attempt to attack Israeli citizens in Cyprus was thwarted, “thanks to the activity of the Cypriot security authorities, in cooperation with Israeli security services.”

He gave no more details about the nature of the attack, and there was no immediate comment from Iranian authorities.

A spokesperson for Britain’s Foreign Office confirmed the individual’s nationality, saying it was in contact with local authorities.

“We are in contact (with) the authorities in Cyprus regarding the arrest of a British man,” the spokesperson told Reuters.

Several Cypriot news outlets reported the suspect was a man of Azeri ethnic descent and had been arrested in the Zakaki suburb of the coastal city of Limassol. The suspect was thought to have had a British RAF military base in nearby Akrotiri under surveillance, as well as Cyprus’s own Andreas Papandreou Air Base in the western region of Paphos since mid-April, Cyprus’s ANT1 news portal reported.

Cyprus lies very close to the Middle East and has in recent days been used as a transit point for people either leaving or going to the region amid the conflict between regional foes Israel and Iran.

Terror-related offenses on the island are very rare.


IAEA says centrifuge workshop at Iran’s Isfahan nuclear site hit

Updated 21 June 2025
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IAEA says centrifuge workshop at Iran’s Isfahan nuclear site hit

  • “There was no nuclear material at this site and therefore the attack on it will have no radiological consequences,” Grossi said

VIENNA: The UN nuclear agency confirmed on Saturday that a centrifuge manufacturing workshop at Iran’s Isfahan nuclear site had been hit, in the latest strike amid Israel’s bombing campaign.


“A centrifuge manufacturing workshop has been hit in Esfahan, the third such facility that has been targeted in Israel’s attacks on Iran’s nuclear-related sites over the past week,” the Vienna-based International Atomic Energy Agency (IAEA) said in a statement quoting its chief Rafael Grossi.

“We know this facility well. There was no nuclear material at this site and therefore the attack on it will have no radiological consequences,” Grossi was quoted as saying.