Bulgaria may try to thaw its frozen interbank market by guaranteeing all loans lenders give each other. The guarantee should run for a year after changes to the deposit insurance act passed at first reading yesterday take effect. An ordinance of BNB should lay down the segments and volumes to be covered by the state guarantee. Over 90% of the cash banks lend to each other in Bulgaria are overnight deposits. The government may use the fiscal reserve or the budget surplus to provide the guarantee, said budget and finances parliamentary commission chairman Rumen Ovcharov, one of the authors of the proposal. Another possible step of preventing possible troubles in the banking sector was loosening the reserve requirements, said prime minister Sergei Stanishev. According to him, cutting the minimum reserves is just one of a string of possible measures, and any move will be coordinated with BNB and the Association of Banks in Bulgaria.