Ratings agency Moody’s says that the $11bn of aid secured by Lebanon in early April will have a positive impact on the country’s economy.

The aid will be spent over the next five years to overhaul the country’s ailing infrastructure and underpin economic growth.

Moody’s says the aid package is credit positive because it supports the resumption of public investment, while incentivising fiscal reform implementation as a condition for disbursements.

Lebanon received more than $11bn of pledges of aid at a conference in Paris on 6 April. The pledges include $10.2bn in loans and $860m in grants.

Moody’s forecasts growth to average 3 per cent in 2018-21, compared with an average of 1.6 per cent for 2013-16.