The Central Bank of Cyprus has calculated the reference interest rate at 11.32%, exercising its powers under Article 314A of the Criminal Code, Cap. 154.
The rate serves as the legal threshold for determining whether financial or property benefits obtained through certain lending arrangements constitute a criminal offence.
What the law covers
Under Article 314A, an offence is committed when a person obtains, collects, charges or agrees to receive an economic or property benefit exceeding the reference interest rate in connection with:
- The provision of a loan
- The granting or extension of a payment deadline
- The renewal of a loan
- The discounting of a loan
The provision applies whether the benefit is obtained for the person involved or for a third party.
Penalties for exceeding the rate
A person convicted of exceeding the reference interest rate may face up to five years in prison, a fine of up to €30,000, or both penalties.
