Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week. Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar.
Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors. The programme includes technical assistance from the World Bank and a monitoring framework agreed with donors.
Background
Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week. Economists expect inflation to ease into single digits by year end if the exchange rate holds.
“The numbers are moving in the right direction, but the margin for error is thin.”
Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote. The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial.
The programme includes technical assistance from the World Bank and a monitoring framework agreed with donors. The announcement lifted shares in the sector by as much as four percent in early trading.
What happens next
Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors. Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income.
The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule. Economists expect inflation to ease into single digits by year end if the exchange rate holds.
Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar. The announcement lifted shares in the sector by as much as four percent in early trading.
Executives said demand from Gulf clients had exceeded expectations, prompting plans for a second facility in Tripoli. The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial.
