Economists expect inflation to ease into single digits by year end if the exchange rate holds. Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote.
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.
What happens next
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.
“This is the most consequential moment for the sector since the crisis began.”
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.
Executives said demand from Gulf clients had exceeded expectations, prompting plans for a second facility in Tripoli. Bankers who spoke to Beirut Financial described the mood as cautiously optimistic, with liquidity improving month on month.
The wider picture
Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week. 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. Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week.
