Central Bank of Cyprus sets reference interest rate at 11.32 percent

The Central Bank of Cyprus has officially announced that the reference interest rate, as stipulated under Article 314A of the Criminal Code (Cap. 154), is set at 11.32%. The regulatory body calculated this figure in accordance with the specific legal powers granted by the underlying legislation.

Article 314A of the Criminal Code defines the legal parameters for lending activities and payment extensions. Under this statute, any individual or entity that charges or receives financial or asset-based benefits exceeding this reference rate—whether for themselves or for a third party—is considered to be committing a criminal offence. The scope of this law encompasses the provision of loans, the extension of payment deadlines, as well as the renewal or prepayment of existing loan agreements.

Violations of this regulation carry significant legal consequences. Convicted individuals face potential penalties including imprisonment for a term of up to five years, a fine of up to €30,000, or a combination of both punishments. This measure serves to regulate lending practices and deter usurious activities within the Cypriot financial framework.