Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote. Bankers who spoke to Beirut Financial described the mood as cautiously optimistic, with liquidity improving month on month.

Executives said demand from Gulf clients had exceeded expectations, prompting plans for a second facility in Tripoli. Economists expect inflation to ease into single digits by year end if the exchange rate holds.

Market reaction

Much depends on whether the government can hold its coalition together long enough to pass the legislation. Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar.

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

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.

Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week. Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote.

What happens next

The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial. Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors.

Bankers who spoke to Beirut Financial described the mood as cautiously optimistic, with liquidity improving month on month. The announcement lifted shares in the sector by as much as four percent in early trading.

Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week. Much depends on whether the government can hold its coalition together long enough to pass the legislation.