The figures, published on Tuesday, compare with a contraction of 2.1 percent in the same period a year earlier. The programme includes technical assistance from the World Bank and a monitoring framework agreed with donors.
Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors. Much depends on whether the government can hold its coalition together long enough to pass the legislation.
Market reaction
Remittances remain the single largest source of hard currency, accounting for roughly a fifth of national income. The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule.
“Capital follows credibility, and credibility is finally being rebuilt.”
Regional peers have moved faster, and the gap is becoming harder to ignore, one former adviser said. Much depends on whether the government can hold its coalition together long enough to pass the legislation.
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.
