Jaber says BDL trying to resolve issue of Hezbollah's al-Qard al-Hassan
Lebanon's Central Bank is trying to address the issue of Hezbollah-affiliated Al-Qard Al-Hasan financial institution, Finance Minister Yassin Jaber told Saudi news interactive channel al-Hadath.
In July, the Central Bank prohibited all licensed financial institutions in Lebanon from dealing directly or indirectly with unlicensed entities and listed Al-Qard Al-Hassan as an example. The bank had issued similar circulars in the past but this was the first time it mentioned Al-Qard Al-Hassan by name.
The U.S. Department of the Treasury imposed sanctions on Al-Qard Al-Hasan in 2007, saying Hezbollah used it as a cover to manage "financial activities and gain access to the international financial system."
Al-Qard Al-Hassan, founded in 1983, describes itself as a charitable organization that provides loans to people according to Islamic principles that forbid interest. Israel struck some of its branches during its war with Hezbollah last year.
Operating as a not-for-profit organization under a licence granted by the Lebanese government, it has more than 30 branches, mostly in predominantly Shiite Muslim areas of Beirut, southern Lebanon and the Bekaa Valley.
A Lebanese official said the central bank move had been in the works for months, and reflected U.S. pressure on Lebanon to take action against Hezbollah's financial wing.
Nassib Ghobril, chief economist at Byblos Bank, said Lebanese banks were already careful to avoid dealing with Al-Qard Al-Hasan because it is under U.S. sanctions.
Source: Naharnet
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