The Central Bank of Cyprus (CBC) has set the reference interest rate, as provided for under Article 314A of the Cyprus Criminal Code, at 11.32%, according to an announcement.
The reference rate is determined by the CBC in accordance with the provisions of Article 314A of the Criminal Code (Cap. 154), which establishes the maximum permissible interest rate for certain lending transactions under Cyprus law.
Under the legislation, any person who, when granting a loan, extending a payment deadline, renewing or discounting a loan, receives, charges or stipulates a financial or property benefit exceeding the reference interest rate commits a criminal offence.
The law provides that anyone convicted of such an offence is liable to imprisonment for up to five years, a fine of up to €30,000, or both.
The CBC periodically determines and publishes the reference interest rate in line with its statutory responsibilities under the Criminal Code.
(Source: CNA)