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.

The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial. The announcement lifted shares in the sector by as much as four percent in early trading.

What happens next

Bankers who spoke to Beirut Financial described the mood as cautiously optimistic, with liquidity improving month on month. The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial.

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

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.

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.

Background

Much depends on whether the government can hold its coalition together long enough to pass the legislation. Executives said demand from Gulf clients had exceeded expectations, prompting plans for a second facility in Tripoli.

Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors. Regional peers have moved faster, and the gap is becoming harder to ignore, one former adviser said.

Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar. Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income.

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.