Cyprus lifts restrictions on Russia's Avtovazbank

NICOSIA, Cyprus (AP) - Cyprus has removed restrictions on money withdrawals and transfers for the clients of Russian bank Avtovazbank who don't live on the island.

The Russia-based bank on Friday became the 16th foreign lender that Cypriot authorities have exempted from capital controls.

But limits, including a 300 euro (S$450) daily withdrawal cap, still apply to its clients living in Cyprus.

Cyprus imposed the restrictions in March to prevent a bank run after it agreed a 23 billion euro rescue package. One of the conditions of the bailout was that clients in Cyprus' two biggest banks with over 100,000 euros in savings would be forced to take losses.

Restrictions have since been partially lifted, but Cypriot authorities say they will fully eliminate them once confidence in the banking system is restored.