The Presidents/Chief Executives,
All Banks/DFIs

Dear Sirs/Madam,

 

MINIMUM RATING OF BANKS REQUIRED FOR ACCEPTANCE OF THEIR
COUNTER-GUARANTEE BY SCHEDULED BANKS/DFIs IN PAKISTAN: R-7 (PARA 2)

The State Bank of Pakistan has received representations regarding some practical difficulties faced by banks/DFIs in complying with the requirements of regulation R-7 (Para 2) of the Prudential Regulations for Corporate/ Commercial Banking. Accordingly, further to our instructions issued vide BPD Circular Letter No. 35 dated October 02, 2004, it has been decided that the prescribed rating requirement for banks situated in foreign countries may be relaxed for transaction amount up to US$250,000, subject to internal credit controls and approvals of the concerned bank/DFI in Pakistan. For transaction amounts greater than US$250,000, banks/DFIs may approach the State Bank of Pakistan for specific approvals/ exemption, on case by case basis, where the prescribed minimum rating requirement cannot be complied with.

2. All other instructions on the subject shall, however, remain unchanged.

3. Please acknowledge receipt.