The programme includes technical assistance from the World Bank and a monitoring framework agreed with donors. Bankers who spoke to Beirut Financial described the mood as cautiously optimistic, with liquidity improving month on month.

The figures, published on Tuesday, compare with a contraction of 2.1 percent in the same period a year earlier. Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote.

Background

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.

“Capital follows credibility, and credibility is finally being rebuilt.”

Much depends on whether the government can hold its coalition together long enough to pass the legislation. Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income.

The programme includes technical assistance from the World Bank and a monitoring framework agreed with donors. The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule.

Why it matters

A spokesperson declined to comment on the size of the facility, citing ongoing discussions with creditors. Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income.

Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors. Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week.

The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial. Much depends on whether the government can hold its coalition together long enough to pass the legislation.

The figures, published on Tuesday, compare with a contraction of 2.1 percent in the same period a year earlier. A spokesperson declined to comment on the size of the facility, citing ongoing discussions with creditors.