Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar. Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar.
Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar. Economists expect inflation to ease into single digits by year end if the exchange rate holds.
Market reaction
The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule. Much depends on whether the government can hold its coalition together long enough to pass the legislation.
“The numbers are moving in the right direction, but the margin for error is thin.”
The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial. Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar.
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.
Background
Bankers who spoke to Beirut Financial described the mood as cautiously optimistic, with liquidity improving month on month. A spokesperson declined to comment on the size of the facility, citing ongoing discussions with creditors.
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.
Much depends on whether the government can hold its coalition together long enough to pass the legislation. Officials say the measures could take effect before the end of the quarter, although parliament has yet to schedule a vote.
