Bank of Cyprus sets reference interest rate
A Central Bank of Cyprus report has shown that net loan demand from businesses in Cyprus fell further in the third quarter of the year. [THE ASSOCIATED PRESS]
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.
