The National Bank of Georgia has released a new set of macroeconomic scenarios for use in International Financial Reporting Standard 9 (IFRS 9), aiming to support transparent, consistent and efficient financial reporting by financial institutions. The update is positioned as a timely source of forward-looking macroeconomic information amid uncertainty linked to ongoing regional and international geopolitical events. The scenarios are built around assumptions on the duration of global tariff policies and the pace of normalization of Georgia’s economic potential. The baseline scenario links short-term growth mainly to high-productivity sectors and external demand, with medium-term growth driven by normalization of these factors. The upside scenario assumes faster easing of tariff policies imposed this year and lower uncertainty around trade flows than in the baseline, while the adverse scenario focuses on tighter global trade and financial conditions under a more severe global tariff and migration policy stance than in the baseline. The National Bank of Georgia notes that uncertainty and risks remain high and clarifies that the risk scenarios are not its forecasts; publication is intended to facilitate transparent IFRS 9 implementation and improve comparability of macroeconomic assumptions across institutions when assessing expected credit losses.
National Bank of Georgia 2025-12-23
National Bank of Georgia publishes updated IFRS 9 macroeconomic scenarios for financial institutions
The National Bank of Georgia has issued new macroeconomic scenarios for International Financial Reporting Standard 9 (IFRS 9) to enhance transparency and consistency in financial reporting. These scenarios consider global tariff policies and Georgia's economic normalization, with baseline, upside, and adverse scenarios outlined. They aim to aid institutions in assessing expected credit losses amid high uncertainty and geopolitical events.