The Central Bank of Cyprus (CBC) on Friday announced that the reference interest rate for loan transactions has been set at 11.42 per cent.

This reference rate serves as a legal benchmark for determining the threshold at which lending practices may become criminally abusive.

According to the relevant legislation, any individual who, in the course of granting or managing a loan, gains financial or property benefits exceeding the reference rate may be committing a criminal offence.

The law provides for strict penalties in cases of conviction.

Offenders may face imprisonment of up to five years, a fine of up to €30,000, or both.

The central bank stressed the importance of compliance with the law’s provisions, underscoring that the measure is intended to prevent exploitative lending practices.