Geneva - Switzerland and Denmark have signed an agreement that paves the way for the lifting of bank secrecy in suspected tax evasion cases, Swiss media reported Wednesday.

Banking secrecy has been enshrined in law in Switzerland since 1934, but the global economic slowdown has increased pressure on so- called tax havens to open up their client confidentiality.

The agreement would be sent to Swiss cantons and Federal Council before being presented to Parliament for approval.

The government has implied it supports putting the deal to a referendum, in Switzerland's direct democracy.

Reports said Switzerland reached a similar agreement with another country, most likely a European Union member, though information on that case was kept confidential.

Switzerland, and other countries with banking secrecy laws are being pushed by Group of 20 (G20) leading economies to extend administrative assistance in tax matters in compliance with Organization for Economic Cooperation and Development (OECD) mechanisms.

On March 13, Switzerland said it would relax banking secrecy and renegotiate its double taxation agreements with various countries. So far, it has been engaged in several rounds of talks with among others, the United States and Japan.

The government has also opened talks in the Persian Gulf following Finance Minister Hans Rudolph Merz's visit to Saudi Arabia over the weekend.

Switzerland's existing laws only allow for the lifting of tight banking confidentiality laws if tax fraud is proven, but not tax evasion, which is deemed a lesser offense.(dpa)