CBC sets reference interest rate at 11.60 per cent

The Central Bank of Cyprus (CBC) set the reference interest rate at 1 1. 60 per cent on Friday, under provisions of the Criminal Code aimed at preventing excessive charges on loans. The rate is determined under Article 314A of the Cyprus Criminal Code, Cap.

154, which makes it a criminal offence for lenders to demand or receive financial or other benefits exceeding the prescribed reference rate. The provision applies when a loan is granted, its repayment period is extended, or an existing loan is renewed or discounted. It covers benefits received, collected, charged, stipulated or obtained either for the lender’s own benefit or on behalf of a third…