The Central Bank of Cyprus has calculated the reference rate under Article 314A of the Penal Code Law, Cap. 154 at 11.50%, establishing the benchmark used to determine when loan-related charges may constitute a criminal offence. Under Article 314A, a person who, in providing any loan, granting or extending time for payment, renewing or discounting a loan, receives, charges, contracts or otherwise obtains for themselves or a third party a financial or property benefit exceeding the reference rate commits an offence. On conviction, the penalty is imprisonment of up to five years or a fine of up to EUR 30,000, or both.
Central Bank of Cyprus 2025-01-31
Central Bank of Cyprus sets Penal Code Article 314A reference rate at 11.50%
The Central Bank of Cyprus has set the reference rate at 11.50% under Article 314A of the Penal Code Law, Cap. 154, to determine when loan-related charges may constitute a criminal offence. Exceeding this rate in loan transactions can lead to penalties including imprisonment up to five years or fines up to EUR 30,000.