The Israeli occupying army launched several airstrikes on Sunday evening targeting the southern suburbs of the Lebanese capital Beirut, aimed at branches of the Al-Qard Al-Hasan Foundation affiliated with Hezbollah, one of which is near the "Rafic Hariri International Airport," shortly after an Israeli threat to strike it.

Footage from some of the targeted areas showed the immense destruction inflicted on the buildings that were struck by the Israeli airstrikes.

The airstrikes targeted branches of the Al-Qard Al-Hasan Foundation in the southern suburbs of Beirut in areas including: Borj el-Barajneh, Haret Hreik, Chiah, Airport Road, Hayy al-Sallam, and Amrousieh in the Shweifat area near Beirut.

What is the Al-Qard Al-Hasan Foundation, what services does it provide, why is it targeted by Israel, and to what extent have the Israeli strikes caused damage to this Lebanese financial institution?

What is the Al-Qard Al-Hasan Foundation?

The Al-Qard Al-Hasan Foundation was established in 1982, following the Israeli invasion of Lebanon, as a "charitable association," and was officially licensed by the Lebanese Ministry of Interior in 1987.

The foundation aims to "help people by providing them with loans for specified periods" to support them in "solving some of their social problems," according to the foundation's website.

The foundation is not subject to the Lebanese "Monetary and Credit Law."

According to the foundation's website, it has "continued to progress and develop at all levels since receiving its license to meet the growing needs of Lebanese people regarding loans."

The foundation has more than 30 branches across Lebanon.

Following the financial collapse in Lebanon in 2019, the foundation provided support to many Lebanese people.

Unlike banks across the country, which imposed restrictions on how much people could withdraw from their bank accounts after the financial crisis, those with deposits at the Al-Qard Al-Hasan Foundation were still able to withdraw their funds.

In 2007 and 2016, the foundation faced U.S. sanctions, with Washington accusing it of "illegally transferring funds" to Hezbollah, stating in a statement that this institution "undermines the stability of the Lebanese state."

In 2021, the U.S. Treasury’s Office of Foreign Assets Control imposed sanctions on seven individuals linked to Hezbollah and the Al-Qard Al-Hasan Foundation.

A year later, the Biden administration sanctioned two more individuals, including the foundation's director, Adel Mansour, and two companies in Lebanon for providing financial services to Hezbollah.

What services does the Al-Qard Al-Hasan Foundation provide?

The foundation states that its work is "primarily charitable and social in nature."

It added in a statement issued in January 2023 that it "is not a bank, but a charity that attracts contributions from benefactors and provides interest-free loans to all those in need for manageable periods."

The foundation emphasizes on its website that its policy allows it to provide loans without discrimination based on religion, sect, or region.

The services provided by the foundation vary, including several forms of loans, such as social cooperation funds that encourage closely related individuals to create a joint social cooperation fund, allowing them to receive easily repayable loans.

The services also include guaranteed loans from contributors, wherein the contributor or participant supports the borrower with an amount not exceeding the financial contribution, and the loan is repaid over a period not exceeding 60 months in equal monthly installments starting one month after the date of receiving the loan.

Additionally, its services include gold deposit loans, where the loan applicant pawns an amount of gold exceeding the value of the requested loan, with a maximum of $6000, and the loan is repaid in equal monthly installments, with a maximum repayment period of 36 months.

Why is Israel targeting the Al-Qard Al-Hasan Foundation?

The Israeli airstrikes targeting the Al-Qard Al-Hasan Foundation come at a time when the occupation claims that it represents the financial arm of Hezbollah, as part of its effort to target the party's infrastructure and logistics.

Israeli Defense Minister Yoav Gallant signed an order on Monday evening to add "Al-Qard Al-Hasan" to the list of groups designated by Israel as terrorist organizations.

This designation is part of a broader campaign led by the occupation government to target Hezbollah's economic resources, according to a report published by the American newspaper The New York Times.

Shlomit Waghman, the former head of Israel's Anti-Money Laundering and Terrorism Financing Authority, claimed that "Al-Qard Al-Hasan" has become the primary financial institution for Hezbollah, responsible for safeguarding around $750 million annually of Iranian funding.

In a statement following the recent attacks on the foundation on Sunday evening, the Israeli occupying army said that it "directly finances the terrorist activities of Hezbollah," including the purchase of "weapons and payments to operatives in the military wing of Hezbollah."

It added that these strikes are part of Israel's efforts "to weaken Hezbollah's terrorist infrastructure and its military capabilities and ability to rebuild."

For his part, Hezbollah's media relations official, Mohammad Afeef, stated that the shelling targeting the Al-Qard Al-Hasan Foundation centers is completely unjustified.

Afeef added in a press conference held on Tuesday afternoon that the Al-Qard Al-Hasan Foundation is a licensed civil institution, and that the party does not receive any allocations from it.

Observers noted that Hezbollah does not receive financial support from the "Al-Qard Al-Hasan" institution, according to a report from the Associated Press.

Lebanese political analyst Faisal Abd al-Sattar, who closely follows Hezbollah's affairs, stated that the party does not obtain its funding through the foundation, adding that the money deposited in the foundation belongs to individuals and companies, and that its financial system benefits low-income earners.

Abd al-Sattar described the Israeli airstrikes targeting the foundation as a "symbolic blow."

Has the Al-Qard Al-Hasan Foundation been harmed by the Israeli strikes?

Experts believe that this action by itself is unlikely to harm Hezbollah's funding or the operations of the Al-Qard Al-Hasan Foundation.

The foundation sought to reassure its clients, stating in a statement issued late Sunday that it evacuated all its branches and moved gold and other deposits to safe areas.

The Associated Press quoted Lebanese economic expert Louis Hbeika as saying that the destruction of the branches of the Al-Qard Al-Hasan Foundation will not affect Hezbollah's funding, as its funds come from Iran and wealthy supporters around the world.

Lina Khatib, a senior fellow at Chatham House, stated that the foundation's clients still believe that "Hezbollah will be able to compensate them for their losses."

Khatib indicated that the operations of the Al-Qard Al-Hasan Foundation, like those of any financial institution, are not limited to any physical assets targeted in the strikes, according to a report from the Associated Press.