Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors. Executives said demand from Gulf clients had exceeded expectations, prompting plans for a second facility in Tripoli.
Regional peers have moved faster, and the gap is becoming harder to ignore, one former adviser said. The figures, published on Tuesday, compare with a contraction of 2.1 percent in the same period a year earlier.
The wider picture
Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote. A spokesperson declined to comment on the size of the facility, citing ongoing discussions with creditors.
“This is the most consequential moment for the sector since the crisis began.”
Executives said demand from Gulf clients had exceeded expectations, prompting plans for a second facility in Tripoli. Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar.
The programme includes technical assistance from the World Bank and a monitoring framework agreed with donors. Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote.
What happens next
Much depends on whether the government can hold its coalition together long enough to pass the legislation. Economists expect inflation to ease into single digits by year end if the exchange rate holds.
Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income. Bankers who spoke to Beirut Financial described the mood as cautiously optimistic, with liquidity improving month on month.
