Cyprus caps rates at 11.42%

The Central Bank of Cyprus has determined the maximum interest rate for lending in the country to be 11.42%, exercising its powers under the Cyprus Penal Code.

"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," a CBC announcement said on Friday.