The Central Bank of Cyprus has set the reference interest rate at 11.84%, exercising its powers under Article 314A of the Cyprus Criminal Code, Cap. 154.
According to the provisions of the article, this reference rate serves as the legal benchmark for determining cases of excessive interest charges. The law stipulates that any person who, when providing a loan, extending payment terms, renewing or discounting a loan, receives or stipulates financial or property benefits exceeding the reference interest rate, commits an offense.
Those found guilty are liable to a prison term of up to five years, a fine not exceeding pound 30,000, or both penalties.