The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial. 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. The announcement lifted shares in the sector by as much as four percent in early trading.
Background
The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule. The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial.
“Nobody wants a repeat of 2019, and that concentrates minds.”
Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week. Executives said demand from Gulf clients had exceeded expectations, prompting plans for a second facility in Tripoli.
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.
Why it matters
The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule. The figures, published on Tuesday, compare with a contraction of 2.1 percent in the same period a year earlier.
