KARACHI, Jan 27: The State Bank has relaxed the rules relating to minimum ratings of banks situated abroad required for acceptance of their counter guarantee by banks and development finance institutions (DFIs) in Pakistan.

A letter issued by the SBP on Thursday said that the prescribed rating requirement for banks situated abroad would be relaxed for transactions involving up to $250,000. But it would be subject to internal credit controls and approval of the bank or DFI concerned in Pakistan.

For transactions involving more than $250,000, banks/DFIs may approach the SBP for seeking specific approvals or exemptions on case by case basis, if they cannot comply with the prescribed minimum rating requirements.