Cyprus has scrapped all limits on daily cash withdrawals from banks in a significant loosening of capital controls that were imposed following the country's financial rescue deal a year ago.

A new Financial Ministry decree also increased the amount of money a person can move within Cyprus to 50,000 euros from 20,000 euros. The amount for companies doubled to 200,000 euros.

The decree also allows people to open new accounts in any bank as long as they have a fixed term deposit of 5,000 euros or more.

Cypriot authorities imposed the controls to head off a run because a key clause of its rescue involved the seizure of almost half of uninsured deposits in the country's largest bank and closure of its second largest lender.

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