Some small Danish banks in liquidity bind -minister

COPENHAGEN Aug 12 (Reuters) - Several small Danish banks are in a liquidity squeeze, and the government is working on new measures to make it safe for foreign investors to lend to Denmark's banks, Economics and Business Minister Brian Mikkelsen said on Friday.

Mikkelsen said some Danish financial institutions would face "serious challenges" in 2013 when a state guarantee expires, and added that he expected to reach a political deal on new measures for banks in Denmark soon.

He told a news conference that the government was also working to identify the systemically important banks in Denmark. (Reporting by Mette Fraende and John Acher)