File photo
Source: CNA
The Central Bank of Cyprus determined the reference interest rate to be 11.42%, exercising its powers under article 314A of the Cyprus Penal Code, Cap.154, and in accordance with the provisions of the said article.
"According to the aforementioned article, at the point of loan granting, extending the repayment period, renewing or prepaying a loan, it constitutes an illegal act when a person reaps, receives, collects, or charges, for his interest or on behalf of a third party, economic or property benefits, in excess of the reference interest rate," a CBC announcement says.
