The figures, published on Tuesday, compare with a contraction of 2.1 percent in the same period a year earlier. Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income.
Regional peers have moved faster, and the gap is becoming harder to ignore, one former adviser said. Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week.
Why it matters
Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income. 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.”
Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar. Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote.
The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule. Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income.
Market reaction
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.
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.
