Τhe Central Bank of Cyprus has determined the reference interest rate to be 11.72%.
According to a press release by the CBC, the Bank, "exercising its powers under article 314A of the Cyprus Criminal Code, Cap.154, and in accordance with the provisions of the said article, determines the reference interest rate to be 11.72%".
It adds that according to the aforementioned article, a person who, when providing any loan, when providing or extending the payment term, when renewing or discounting a loan, receives, collects, charges, stipulates or takes for his own benefit or on behalf of a third party financial benefit or property benefits which exceed the reference interest rate, commits an offense and, in case of conviction, is liable to a term of imprisonment not exceeding 5 years or a fine not exceeding €30,000 or both penalties.
(Source: CNA)
