Commercial banks in Bulgaria provide credits to the SMEs for a term of up to one year. A very small part of the loans have a repayment term of three years, show data of the Centre for Economic Development (CED). The interests on credits in Bulgaria are the highest in the region. Apart from the restrictions of the banking system the currency board also contributes to maintaining high interest rates on credits and determines the banks' unwillingness to extend loans. A total of 68% of the commercial banks in this country back up the idea for creating a guarantee fund for equal distribution of the risks in extending loans to SMEs.