Cyprus sets criminal code reference interest rate at 11.32%

The Central Bank of Cyprus has updated the statutory benchmark used to calculate penalties for usury and excessive lending under the country's Criminal Code.

By Handelsavisen Newsroom · Automated 2026-07-31 07:41 UTC · 1 min read

The Central Bank of Cyprus has set the reference interest rate under Article 314A of the Criminal Code at 11.32%.

The rate serves as the legal threshold for determining excessive interest charges in lending agreements.

Lenders charging rates above this benchmark may face penalties under the statute, which is designed to protect borrowers from predatory lending practices.

The calculation is based on prevailing market conditions and monetary policy indicators.

The update reflects the current cost of funds and risk premiums in the Cypriot banking sector.

This administrative update is distinct from the Central Bank's monetary policy rate, which governs broader economic conditions.