The Central Bank of Cyprus (CBC) on Friday announced the reference interest rate, under article 314A of the Cyprus Criminal Code, has been set at 11.72 per cent.

The CBC stated that the rate is determined in accordance with the provisions governing lending practices and financial transactions.

In addition, CBC confirmed that the reference interest rate currently stands at 11.72 per cent, which serves as a benchmark for assessing legality in lending agreements.

“A person who, when providing any loan, when providing or extending the payment term, when renewing or discounting a loan, receives, collects, charges, stipulates or takes for his own benefit or on behalf of a third party financial benefit or property benefits which exceed the reference interest rate, commits an offense and, in case of conviction, is liable to a term of imprisonment not exceeding five years or a fine not exceeding €30,000 or both penalties,” the central bank said.