A €1.5 billion ($1.7 billion) limit on export guarantees to Turkey would not be renewed this year, Germany's economy ministry told AFP, confirming an earlier report by the newspaper Frankfurter Allgemeine Zeitung.
The measure was imposed in July 2017 as a way to pressure Ankara after the detention of a German human right campaigner and five other activists, including the head of Amnesty International in Turkey.
Opposition parties in Germany have accused the €1.5 billion limit of being too timid, given that the value of export guarantees increased from €1.1 billion in 2016 to €1.46 billion the following year.
Germany's foreign ministry also removed a warning on its website about its nationals facing a high risk of arrest when visiting Turkey.
Turkey's state of emergency, which was imposed after a failed 2016 coup and saw the biggest purge of officials in the country's modern history, came to an end on Thursday.
However the country's opposition has accused the government of moving to permanently formalise some of the measure's harshest aspects.
On Friday, Turkey and the Netherlands ended months of enmity and agreed to restore diplomatic ties after two Turkish ministers were barred from a Rotterdam rally.