Hezbollah’s financial turmoil: A crisis of loyalty and influence

Hezbollah, a Lebanese militant organisation, is grappling with significant financial difficulties. It lacks the funds to fulfil its obligations to its fighters and supporters.

Hezbollah, an organisation supported by Iran, is feeling the financial impacts of the conflict with Israel. According to “The Wall Street Journal,” the group’s annual budget, excluding weapons expenditures, previously amounted to a billion dollars. However, now, three months after the ceasefire with Israel, Hezbollah is unable to pay salaries.

Hezbollah, operating as a state within a state, provided jobs and benefits to its supporters. However, the costs of the war with Israel have depleted its budget. “I have so many questions about why we were dragged into this conflict, the suffering we endured, and who will compensate us for our losses,” says the owner of a destroyed restaurant in an interview with “WSJ”.
Hezbollah is in trouble. The state within a state has lost financial liquidity

The Lebanese government, supported by the USA, is trying to limit the flow of funds from Iran to Hezbollah. Recently, Iranian planes were prevented from landing in Beirut. Additionally, the loss of power in Syria by Bashar al-Assad has restricted the flow of weapons and money to Lebanon.

Lina Khatib of Chatham House, a think tank focused on international relations research, believes the lack of political and financial benefits could weaken loyalty to Hezbollah. The new President of Lebanon, Joseph Aoun, hopes to undermine the organisation’s influence, but the country is also grappling with an economic crisis.

Hezbollah is funded by Lebanese business groups, private individuals, entrepreneurs, the Lebanese diaspora engaged in diamond mining in Africa, other groups and Islamic countries, as well as taxes paid by Shiite Lebanese. Recognised as a religious organisation, Hezbollah has access to zakat, an informal, annually obligatory tax paid by all Muslims.

Source » msn