Israel Defense Forces reservists Eldad Regev and Ehud Goldwasser were captured by Hezbollah gunmen in July 2006.
"Hezbollah continues to refuse to provide any information on the release or fate of abducted soldiers, and places conditions and demands for the release that are far outside the scope of resolution 1701," Ban wrote in the report obtained by Haaretz.
The resolution was passed by the U.N. Security Council to halt the month-long war between Israel and Hezbollah in July 2006, the newspaper said.
Ban also cites Israeli intelligence reports that Hezbollah has restocked its arsenal of rockets and missiles, including 10,000 long-range rockets and 20,000 short-range projectiles.
"The reports of Hezbollah rearming are a cause of great concern posing serious challenges to the sovereignty, stability, and independence of Lebanon," Ban wrote in the report.
Ban also criticized Hezbollah Secretary-General Hassan Nasrallah for making claims that his group has body parts of Israeli soldiers.
Such statements "have not contributed to the desired humanitarian solution," Ban wrote.
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