The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial. 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. Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote.

Why it matters

Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week. Regional peers have moved faster, and the gap is becoming harder to ignore, one former adviser said.

“The numbers are moving in the right direction, but the margin for error is thin.”

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.

Regional peers have moved faster, and the gap is becoming harder to ignore, one former adviser said. A spokesperson declined to comment on the size of the facility, citing ongoing discussions with creditors.

What happens next

The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule. Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors.

The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial. The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule.

A spokesperson declined to comment on the size of the facility, citing ongoing discussions with creditors. Much depends on whether the government can hold its coalition together long enough to pass the legislation.

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