Bank of Cyprus sets reference interest rate

The Central Bank of Cyprus, exercising its powers under article 314A of the Cyprus Penal Code, and in accordance with its provisions, has set the reference interest rate at 11.76%. 

"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," the Central Bank noted in a press release.