Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar. Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week.

Analysts caution that the outlook remains tied to the pace of structural reforms and the political calendar. The deal would be the largest of its kind in the country since 2019, according to data compiled by Beirut Financial.

What happens next

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.

“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. Much depends on whether the government can hold its coalition together long enough to pass the legislation.

Regional peers have moved faster, and the gap is becoming harder to ignore, one former adviser said. Economists expect inflation to ease into single digits by year end if the exchange rate holds.

Background

The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule. Critics argue the timeline is unrealistic and that the burden will fall disproportionately on small depositors.

The announcement lifted shares in the sector by as much as four percent in early trading. Bankers who spoke to Beirut Financial described the mood as cautiously optimistic, with liquidity improving month on month.

Investors have been watching the negotiations closely, with yields on the 2030 notes narrowing by 40 basis points this week. A spokesperson declined to comment on the size of the facility, citing ongoing discussions with creditors.

The plan sets out three phases, beginning with an audit of balance sheets and ending with a recapitalisation schedule. A spokesperson declined to comment on the size of the facility, citing ongoing discussions with creditors.