Cyprus' Finance Minister, Makis Keravnos, set the public interest rate for arrears at 5.5% and the court interest rate at 6% in decrees issued on Monday. Both interest rates come into effect as of January 1.

According to the decree setting the single public interest rate for arrears for 2025, the public default interest rate is set at 5.50%, while at the same time the relevant decree for 2024, which set the public default interest rate at 5%, is repealed.

According to the law, public interest rate on arrears is interest payable by or to the state as a result of a failure or delay in the repayment of any overdue debt or debt owed by or to the state.

At the same time, the Minister issued a decree setting the court interest rate at 6%, up from 5.50% in 2024.