ATHENS—Greece's Finance Ministry said Friday it is easing the country's capital controls, a move aimed at boosting confidence in banks about a year after the measures were introduced to prevent the financial system from collapsing.

The new measures will help increase the flexibility in which money can be withdrawn at banks and lift restrictions on loan repayments, according to the Finance Ministry, but severe restrictions preventing cash from leaving the country remain in place.

The move is aimed at drawing billions of euros Greeks still have stashed under their mattresses after a bank run resulted in some €43 billion (about $47.1 billion) fleeing the system in just over a year amid concerns over the country's future in the eurozone.

It is the 11th ministerial decision allowing for the easing of the capital controls since they were introduced, the ministry said in a statement.

Among the other changes, new deposits paid into Greek banks won't be subject to capitals controls and there will be higher withdrawal limits on money that has come from abroad.

Write to Stelios Bouras at stelios.bouras@wsj.com

(END) Dow Jones Newswires

July 22, 2016 14:15 ET (18:15 GMT)