The Central Bank of Cyprus (CBC) announced that it has officially set the reference interest rate at 11.50%, exercising its powers under Article 314A of the Cyprus Criminal Code, Cap. 154.

Under the provisions of Article 314A, any individual or entity providing loans, extending payment terms, renewing, or discounting loans must not charge or receive financial benefits exceeding the established reference interest rate. Violations of this regulation constitute a criminal offense, carrying severe penalties, the announcement adds.

According to the law, individuals found guilty of exceeding the reference interest rate could face imprisonment of up to five years, a fine of up to thirty thousand euros (€30,000), or both penalties.