Central Bank of Cyprus sets reference interest rate at 11.72 percent

On Friday, April 24, 2026, the Central Bank of Cyprus (CBC) announced that the reference interest rate, established under Article 314A of the Cyprus Criminal Code, has been set at 11.72 percent. This rate serves as a legal benchmark for assessing the legality of financial transactions, including loan agreements, payment extensions, and renewals. According to the CBC, any individual who charges, collects, or stipulates financial benefits exceeding this reference rate commits a criminal offense. Violations of these regulations are subject to severe legal penalties. Specifically, a conviction may result in imprisonment for a term not exceeding five years, a fine of up to €30,000, or both. The bank stated that this measure is determined in accordance with existing provisions governing lending practices and financial operations. This announcement reinforces the bank's regulatory framework regarding market oversight and consumer protection against predatory lending.