Foreign currency loans in Bulgaria from 2003-2007 were studied to understand if they were driven by demand or supply. Data from one bank showed that 32% of foreign currency loans were actually requested in local currency by firms. The bank tended to lend in foreign currency to less risky firms, for long-term loans, and when it had more funding in euros. This suggests that foreign currency borrowing in Eastern Europe is not just about lower interest rates, but also about banks wanting to match their assets and liabilities in terms of currency.