Exclusive to Voice of America; Hezbollah's Financial Resources Dwindling Amid Conflict with Israel

Voice of America's investigations, based on reports from researchers in the United States and Lebanon and reports from the U.S. Treasury Department, indicate that Hezbollah militants in Lebanon are facing a cash shortage amid weeks of Israeli attacks. According to the report, Hezbollah's funding primarily came from three sources: an unlicensed financial institution 'al-Qard al-Hassan', several bankrupt but licensed Lebanese banks, and cash smuggling via planes to Beirut airport. All these sources have failed to send money to this Iran-backed group following the Israeli attacks and the elimination of senior Hezbollah leaders. Documents show that Hezbollah established the financial group 'al-Qard al-Hassan' in 1982 as a charity providing interest-free loans to needy Lebanese, mainly Shia. This institution was sanctioned by the United States in 2007 with assets of about half a billion dollars and was severely damaged last month during Israeli airstrikes on Hezbollah targets in the southern suburbs of Beirut. Hilal Khashan, a political science professor at the American University of Beirut, told Voice of America that since Israel has destroyed most branches of this financial institution in airstrikes, Hezbollah is facing a serious financial crisis and is unable to meet the financial needs of its members. David Asher, a former U.S. State Department official, also told Voice of America, 'Hezbollah is in deep trouble and has lost access to the Lebanese banking system because Lebanese bankers and Hezbollah's financial providers have fled to Europe and Gulf countries out of fear of Israeli attacks and with an awareness of potential major changes for Hezbollah.' According to experts, another financial source for Hezbollah that is now blocked is cash deliveries on planes mainly flying from Iran to Beirut airport. Voice of America’s reporter cited Israeli sources stating that Iranians are currently afraid to send money to Lebanon because Israel has threatened to target Islamic Republic flights to Beirut. Hilal Khashan noted that in previous years, the Islamic Republic arranged regular flights from Tehran to Beirut for smuggling cash to Hezbollah without going through Lebanese customs, but now, with the intensification of Israeli attacks on southern Beirut suburbs, the Lebanese government has exercised tighter control over the airport, and there is no cash flow for Hezbollah. Experts say that despite the cash shortage, it is unlikely Hezbollah will soon back down from its conflict with Israeli forces. This report was prepared by Michael Lipin, a reporter for the English section of Voice of America.