Central Bank of Cyprus Report: Decrease in Business Loan Demand
A recent report from the Central Bank of Cyprus has revealed that there has been a decrease in net loan demand from businesses in the country during the third quarter of the year. This decline in loan demand could have various implications for the economy and the financial sector in Cyprus.
Reference Interest Rate Set at 11.76%
In response to the changing loan demand, the Central Bank of Cyprus has taken action by setting the reference interest rate at 11.76%. This decision was made in accordance with article 314A of the Cyprus Penal Code, which prohibits the charging of interest rates above the reference rate.
According to the Central Bank’s press release, any individual or entity found charging interest rates higher than the reference rate will be considered to be engaged in illegal activity. This measure aims to protect borrowers from excessive interest charges and promote fair lending practices in Cyprus.
