Denmark guarantees deposits

COPENHAGEN (Reuters) - The Danish government early on Monday guaranteed all bank deposits in Denmark as part of a deal with banks to set up a 35 billion Danish crown (3.67 billion pound) liquidation fund.

Until now, deposits in Danish banks had been guaranteed up to 300,000 crowns.

In return for the government guarantee, banks agreed to pay up to 35 billion crowns over two years in a liquidation fund that could take over distressed institutions to avoid losses to depositors and certain creditors.

(Reporting by Gelu Sulugiuc)