Central Bank of Cyprus sets 11.32% reference interest rate for usury offences

Nicosia, Cyprus. The Central Bank of Cyprus has set the reference interest rate at 11.32 per cent under Article 314A of the Criminal Code Law (Cap. 154). The rate is used as the legal threshold for determining whether a lending transaction constitutes usury.

Legal framework

The central bank said the reference rate was calculated in accordance with the powers granted to it under the relevant legislation.

Under Article 314A, a person commits an offence if, when granting, renewing or discounting a loan, extending or granting additional repayment time, they receive, collect, charge or agree to obtain a financial or property benefit exceeding the reference interest rate.

Penalties

A person convicted of the offence may face up to five years’ imprisonment, a fine of up to €30,000, or both penalties.