Lebanon

Financial Crisis Halts Compensation Payments for Last Israeli War: Hezbollah and Lebanese State at Standstill

Financial Crisis Halts Compensation Payments for Last Israeli War: Hezbollah and Lebanese State at Standstill

The compensation file for those affected by the recent Israeli war is in a state of stagnation, with no execution mechanism from either the Lebanese government or Hezbollah. Thousands of affected individuals are anticipating official announcements specifying the start date or method of compensation, as asset surveys continue in several regions. Insiders highlight ongoing reviews within Hezbollah, which has yet to finalize damage assessments, while the Lebanese state claims financial inadequacies to initiate the process.

Sources from Beirut's southern suburbs indicate that Hezbollah has not begun disbursing compensation, leaving the issue unresolved as internal processes are awaited.

Insiders state that compensation mechanisms are still under review within party ranks, with file reviews and verifications ongoing, but no payment decisions made.

Victims: No Compensation or Housing Aid
Victims express skepticism about imminent compensation efforts. A source from the southern suburbs, preferring anonymity, confirmed that compensation-related activities are still stagnant. The source has not received any compensation or housing aid, despite partial damage to his Haret Hreik home during the last war.

He added that his other home in al-Nabatieh district also suffered war damage, with no financial aid forthcoming. Certain municipalities conducted preliminary damage assessments to document and prepare for future measures, though lacking Hezbollah's promised follow-up, unlike the post-2024 war period.

Locals are uncertain about the war's conclusion, postponing compensation expectations due to unclear timing or methods of compensation.

Financial Crisis Alters Priorities
Professor Mona Fayad sees Hezbollah's compensation delays as reflective of a severe financial crisis rather than administrative lag. She explains the delay stems from regional changes and pressures impacting their financial backbone, compelling Hezbollah to reprioritize its financial commitments. The party continues paying salaries and providing limited aid but has not pursued substantial compensations, indicating strained resources.

She notes that Iran's diminished influence in arenas like Syria and Iraq has directly impacted Hezbollah’s financial capabilities, enforced through increased scrutiny over financial conduits and operational constraints.

Financial challenges are manifesting visibly through compensation inaction, yet internal dissent remains muted due to the state's incapacity to offer alternatives.

Survey Commences, but Compensation Lacks Funding
According to Hashem Haidar, head of the South Council, damage assessments began immediately after the ceasefire, though compensation hasn't due to lack of funding. Haidar confirmed survey activities in safe areas, while dangerous zones remain inaccessible.

In terms of compensation, Haidar revealed no payouts have started as the state lacks financial resources. He highlighted that specific damage estimates are pending comprehensive surveys, with access to some areas, known as 'Yellow Zone', restricted, complicating the full damage assessment at this time.

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