Copenhagen - Danish banking shares opened higher on Monday after the announcement that the government and opposition had agreed on a new banking package.

The package worth 100 billion kroner (17.8 billion dollars) was unveiled late Sunday and aimed to prevent "businesses and citizens getting caught in a credit squeeze," the government said.

"Borrowing money from the Danish state will by no means be without cost to the credit institutions," Minister for Economic and Business Affairs Lene Espersen and Finance Minister Lars Lokke Rasmussen said.

The fixed interest rate could vary between 9 per cent and 11.25 per cent, the government said.

Espersen told reporters the Danish financial system could "learn some lessons" and become a little more restrictive in terms of lending in future.

Some analysts predicted that the package could mean that businesses and households would have to pay more for loans in future. (dpa)