Good loan !! Have you approached the end ??
Good loan
The “good loan” association is one of the most controversial financial phenomena in Lebanon.
This association, which was established in 1982, after the Israeli invasion of Lebanon, under the slogan “Supporting the needy groups”,
Over the years have turned into a bank -like financial institution, providing integrated banking services,
In light of the direct support from Hezbollah and external financing surrounded by a lot of ambiguity.
From a social association to a financial arm
In 1987, the “good loan” received an official license from the Lebanese Ministry of Interior,
It expanded to include today more than 34 branches in the party’s influence areas, most notably in the southern suburbs of Beirut, Bekaa and the South. The association provides various services that include:
- Financial loans guaranteed in gold
- Cooperative loans from shareholders
- Funds for social and rural cooperation
- Financial facilities for limited income owners
This growing activity made the “good loan” more like a bank operating outside the official Lebanese banking system,
This raised the ire of the international community, especially the United States of America.
Increased American pressure: the goal is the head of the “good loan”
Information confirms that the “good loan” has been undergoing US sanctions for years,
In 2007 and 2016, the US Treasury imposed strict measures against the association,
Accusing her of “money laundering” and “financing of terrorism”, in reference to its direct relationship with “Hezbollah”.
And with Lebanon entering a new stage of negotiation with the international community and donor countries,
The “good loan” is one of the most sensitive files on the required reform table.
The United States considers that the continuation of this institution undermines reform efforts, and represents a parallel financing source of Hezbollah outside the legitimate channels.
Towards the end of the “good loan”?
According to special information for the MTV website, Washington has installed its pressure on the Lebanese state to find a legal mechanism to end the work of the “good loan”.
The possibility of withdrawing the license granted to the association through the Ministry of Interior is being discussed, the official authority that the license previously granted.
Especially since the association practices an activity that exceeds the framework on which it was established, which is considered a legal violation.
The talk is taking place in the official corridors about a legal output to avoid the introduction of the Bank of Lebanon in this conflict.
Especially since his powers do not include the associations licensed by the Ministry of Interior, but rather the commercial banks licensed under the Criticism and Credit Law.
Possible challenges and scenarios
Despite the American pressure, the issue of its closure remains very thorny. As taking such a decision may ignite an internal crisis of a political and sectarian nature.
The association is considered in the environment of Hezbollah, a social and economic support network, which benefits thousands of families.
In light of the collapse of the traditional banking system in Lebanon and the lack of confidence in banks.
In the event that the Lebanese state is heading towards closing the “loan”, it may face a popular and even popular escalation.
It may lead to internal tension, in light of the explosive economic crisis.
The question remains today: Will international pressure succeed in imposing the end of the institution as a condition for reform,
Or will the institution continue its work amid precise internal and external balances?
The answer will depend on the extent of the Lebanese state’s ability to make sovereign decisions in isolation from political tensions, and for the extent of Hezbollah’s willingness to abandon one of its most prominent financial arms at this critical stage.
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